81.The first budget customarily prepared as part of an entity's master budget is the a.production budget b.cash budget c.sales budget d.direct materials purchases 82.Motorcycle...







81.The first budget customarily prepared as part of an entity's master budget is the



a.production budget



b.cash budget



c.sales budget



d.direct materials purchases







82.Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (inunits) for the year?



a. 78,500



b. 70,000



c. 77,500



d. 70,500







83.The operating budgets of a company includes the



a.cash budget



b.capital expenditures budget



c.financing budget



d.production budget







84.Which of the following budgets is
notdirectly associated with the production budget?



a.direct materials purchases budget



b.sales budget



c.capital expenditures budget



d.direct labor cost budget









Below is budgeted production and sales information for Flushing Company for the month of December:





































Product XXX




Product ZZZ




Estimated beginning inventory




32,000 units




20,000 units




Desired ending inventory




34,000 units




17,000 units




Region I, anticipated sales




320,000 units




260,000 units




Region II, anticipated sales




180,000 units




140,000 units






The unit selling price for product XXX is $5 and for product ZZZ is $15.





85.Budgeted sales for the month are



a. $3,180,000



b. $5,820,000



c. $1,800,000



d. $8,500,000





86.Budgeted production for product XXX during the month is



a.498,000 units



b.502,000 units



c.534,000 units



d.566,000 units









87.Budgeted production for product ZZZ during the month is



a.403,000 units



b.380,000 units



c.397,000 units



d.417,000 units







88.For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000;advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are$2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are



a. $161,000



b. $237,500



c. $235,000



d. $241,000





89.For April, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $98,000;advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are$2,100 plus 1/2 of 1% of sales. Total selling expenses for the month of April are



a. $159,100



b. $242,600



c. $186,000



d. $182,100









90.Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units,estimated beginning inventory is 108,000 units, and desired ending inventory is 90,000 units. The quantities of directmaterials expected to be used for each unit of finished product are given below.





Material A 0.50 lb. per unit @ $0.70 per pound



Material B 1.00 lb. per unit @ $1.70 per pound



Material C 1.20 lb. per unit @ $1.00 per pound





The dollar amount of material A used in production during the year is



a. $217,700



b. $528,700



c. $311,000



d. $224,600





May 15, 2022
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