121.Consider Derek's budget information: materials to be used totals $64,750; direct labor totals $198,400; factoryoverhead totals $394,800; work in process inventory January 1, $189,100; and work in progress inventory onDecember 31, $197,600. What is the budgeted cost of goods manufactured for the year?
a. $649,450
b. $657,950
c. $197,600
d. $1,044,650
122.The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are asfollows: January 1 finished goods, $765,000; December 31 finished goods, $540,000; and cost of goods sold for theyear, $2,560,000. The budgeted costs of goods manufactured for the year is
a. $1,255,000
b. $2,335,000
c. $2,785,000
d. $3,100,000
123.Heedy Company is trying to decide how many units of merchandise to produce each month. The company policy isto have 20% of the next month’s sales in inventory at the end of each month. Projected sales for August,September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must beproduced in September?
a. 24,000
b. 18,000
c. 28,000
d. 22,000
Next year’s sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be soldfor prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than itsbeginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired endinginventory of B is 3,000 units.
124.Budgeted production of Product B for the year would be
a.24,500 units
b.22,500 units
c.26,500 units
d.23,200 units
125.Gilbert’s expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costswere $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collectedas follows: 30% in the month of the sale and 70% in the following month. Payments of manufacturing costs are asfollows: 25% in the month of production and 75% in the following month. The beginning cash balance onSeptember 1 is $7,500. The ending balance on September 30 would be
a. $61,500
b. $75,000
c. $72,300
d. $71,500
126.The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are asfollows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; and cost of goods sold,$2,560,000. The budgeted costs of goods manufactured is
a. $1,405,000
b. $2,560,000
c. $2,435,000
d. $3,965,000
127.Woodpecker Co. has $296,000 in accounts receivable on January 1. Budgeted sales for January are $860,000.Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75%are expected to be collected in the month of sale and the remainder the following month. The January cashcollections from sales are
a. $812,000
b. $688,000
c. $468,000
d. $984,000
128.The budget that summarizes future plans for the acquisition of fixed assets is
a.direct materials purchases budget
b.production budget
c.sales budget
d.capital expenditures budget
129.Estimated cash payments are planned reductions in cash from all of the following
except
a.manufacturing and operating expenses
b.capital expenditures
c.notes and accounts receivable collections
d.payments for interest or dividends
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first threemonths of business are $260,000, $375,000, and $400,000, respectively, for September, October, and November.The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to becollected in the month of the sale and 20% in the month following the sale.
130.The cash collections expected in September from accounts receivable are estimated to be
a. $223,600
b. $145,600
c. $182,000
d. $168,000