FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Reporting and Analyzing Long-Lived Assets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

A merchandiser has a merchandise purchases budget rather than a production budget.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Strand Company is planning to sell 400 buckets and produce 380 buckets during March.Each bucket requires 500 grams of plastic and one-half hour of direct labor.Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour.Manufacturing overhead is applied at a rate of 110% of direct labor costs.Strand has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory.How much is the total amount of budgeted direct labor for March?

A) $3,000
B) $6,000
C) $2,850
D) $5,7000

E) A) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

If the required direct materials purchases are 24,000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds?

Dart, Inc.makes and sells umbrellas.The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year.The following budget data are available: $\begin{array}{lrr}&\text { Variable Cost Per Unit Sold} &\text { Monthly Fixed Cost }\\\text { Sales commissions } & \$ 0.60 & \$ 6,000 \\\text { Shipping } & 1.20 & \\\text { Advertising } & 0.30 &\\\text { Executive salaries } && 40,000 \\\text { Depreciation on office equipment } && 8,000\\\text { Other }&0.35&28,000\end{array}$ Expenses are paid in the month incurred.If the company has budgeted to sell 8,000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Petal Co.reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\\\text { Budgeted sales } & \$ 930,000 & \$ 870,000 & \$ 1,080,000 \\\end{array}$ -All sales are on credit. -Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much is the November 30, 2013 budgeted Accounts Receivable?

On January 1, Witt Company has a beginning cash balance of $126,000.During the year, the company expects cash disbursements of $1,020,000 and cash receipts of $870,000.If Witt requires an ending cash balance of $120,000, Witt Company must borrow

Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser?

If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

The starting point when budgeting for a not-for-profit organization is generally to budget expenditures first.

Orange Co.is a manufacturer and Pineapple Company is a merchandiser.What is the difference in the budgets the two entities will prepare?

The budgeted balance sheet is prepared entirely from the budgets for the current year.

An unrealistic budget is more likely to result when it

The primary benefits of budgeting include all of the following except it

Which of the following is not a financial budget?

The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

Which one of the following items would never appear on a cash budget?

The financial budgets include the

A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February 2013.The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales.If there were 61,200 units of inventory on hand on December 31, 2012, how many units should be produced in January, 2013 in order for the company to meet its goals?

A budget period should be

Of the following items, which one is not obtained from an individual operating budget?