Question : 21. In 2012, Truman Products sold 900,000 units at $9 each. : 1291752

21. In 2012, Truman Products sold 900,000 units at $9 each. Sales volume is expected to increase by 10 percent in 2013 while the price of each unit is expected to decrease by 15 percent. The expected sales revenue for 2013 is: 
A. $8,761,500
B. $1,336,500
C. $7,573,500
D. $6,885,000

22. Last year, Garrison Manufacturing sold 250,000 units at $8 each. Both sales volume and sales price are expected to increase by 15 percent in the upcoming year. The expected sales revenue for the upcoming year is: 
A. $2,645,000
B. $2,300,000
C. $2,000,000
D. $1,955,000

23. Brady Inc. produced and sold 200,000 units for $50 each last year. For the upcoming year, management believes that if they decrease the price of each unit by 5%, volume will increase 5%. What are Brady’s expected sales revenues for the upcoming year? 
A. $  9,450,000
B. $10,000,000
C. $10,500,000
D. $  9,975,000

24. Broughton Corp. has prepared a production budget for February. Management has determined that the total required production for February is 180,000 units when an ending inventory of 20,000 units is desired and the beginning inventory is 5,000 units.

Based on the above information, what were February’s budgeted sales? 
A. 195,000 units
B. 180,000 units
C. 165,000 units
D. 185,000 units

25. Enloe Manufacturing has prepared a production budget for June. Management has determined that the total required production for June is 680,000 units when an ending inventory of 50,000 units is desired and the beginning inventory is 30,000 units.

Based on the above information, what were June’s budgeted sales? 
A. 660,000 units
B. 700,000 units
C. 760,000 units
D. 680,000 units

26. Ligon Enterprises has prepared a production budget for October. Management has determined that the total required production for October is 800,000 units when an ending inventory of 10,000 units is desired and the beginning inventory is 6,000 units.

Based on the above information, what were October’s budgeted sales? 
A. 806,000 units
B. 796,000 units
C. 804,000 units
D. 794,000 units

27. The budget that forecasts how many units a manufacturing company should produce in order to meet sales projections is called a: 
A. Sales budget.
B. Materials budget
C. Production budget
D. Flexible budget

28. Which of the following budgets would probably not be prepared using information provided by the production budget? 
A. Direct materials budget
B. Direct labor budget
C. Manufacturing overhead budget
D. Sales budget

29. Which of the following equations best depicts a basic production budget? 
A. Required production = Projected sales – Desired ending inventory + Beginning inventory
B. Required production = Projected sales + Desired ending inventory – Beginning inventory
C. Required production = Projected sales – Desired ending inventory – Beginning inventory
D. Required production = Projected sales + Desired ending inventory + Beginning inventory

30. Newman Products is preparing their first quarter production budget. The desired ending inventory of finished goods for the month of January becomes: 
A. the required production for the month of January.
B. the budgeted sales for the month of February.
C. the beginning inventory for the month of February.
D. the required production for the month of February.