Homework Es
1. (TCO 7) The financial budgets include the: (Points : 4) cash budget and the selling and administrative expense budget. cash budget and the pro forma balance sheet. pro forma balance sheet and the pro forma income statement. cash budget and the production budget.
2. (TCO 7) The starting point in preparing a master budget is the preparation of the: (Points : 4) production budget. sales budget. purchasing budget. personnel budget.
3. (TCO 7) The production budget shows planned sales of 43,000. Beginning inventory is 6,400. Units to be produced are 44,400. What is the desired ending inventory? (Points : 4) 5,000 6,400 7,800 12,800
44,400 – 43,000 = 1400 + 6400 = 7800
4. (TCO 7) The direct materials budget shows:
Units to be produced 3,000
Production needs 12,000
Total needs 13,200
What are the direct materials per unit? (Points : 4) 0.44 pounds 4.0 pounds 4.4 pounds Cannot be determined from the data provided.
12000/3000 = 4 pounds
5. (TCO 7) JKL Company expects the following sales and collection pattern for the indicated four months of the year:
Month Cash Sales Credit Sales Total Sales
June $42,000 $82,000 $124,000
July $36,000 $78,000 $114,000
August $41,000 $80,000 $121,000
September $38,000 $83,000 $121,000
•8% of credit sales are collected in the same month
•72% of sales are collected in the following month
•15% of sales are collected in the second following month
What are the projected cash collections for the month of September? (Points : 4) $75,940 $113,940 $118,090
2. (TCO 7) The starting point in preparing a master budget is the preparation of the: (Points : 4) production budget. sales budget. purchasing budget. personnel budget.
3. (TCO 7) The production budget shows planned sales of 43,000. Beginning inventory is 6,400. Units to be produced are 44,400. What is the desired ending inventory? (Points : 4) 5,000 6,400 7,800 12,800
44,400 – 43,000 = 1400 + 6400 = 7800
4. (TCO 7) The direct materials budget shows:
Units to be produced 3,000
Production needs 12,000
Total needs 13,200
What are the direct materials per unit? (Points : 4) 0.44 pounds 4.0 pounds 4.4 pounds Cannot be determined from the data provided.
12000/3000 = 4 pounds
5. (TCO 7) JKL Company expects the following sales and collection pattern for the indicated four months of the year:
Month Cash Sales Credit Sales Total Sales
June $42,000 $82,000 $124,000
July $36,000 $78,000 $114,000
August $41,000 $80,000 $121,000
September $38,000 $83,000 $121,000
•8% of credit sales are collected in the same month
•72% of sales are collected in the following month
•15% of sales are collected in the second following month
What are the projected cash collections for the month of September? (Points : 4) $75,940 $113,940 $118,090