Exam 9: Reporting and Analyzing Long-Lived Assets

Teller Co.is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May.Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor.Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour.Manufacturing overhead is applied at a rate of 110% of direct labor costs.Teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month?

The important end-product of the operating budgets is the

Garnett Co.expects to purchase $180,000 of materials in July and $210,000 of materials in August.Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.How much will August's cash disbursements for materials purchases be?

The direct materials budget contains both quantity and cost data.

A budget can be a means of communicating a company's objectives to external parties.

Burr, Inc.'s direct materials budget shows total cost of direct materials purchases for April $400,000, May $480,000 and June $560,000.Cash payments are 60% in the month of purchase and 40% in the following month.The budgeted cash payments for June are

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

The financial budgets include the

Beginning cash balance plus total receipts

In a production budget, total required production units are the budgeted sales units plus

Long-range planning

Which one of the following is not a benefit of budgeting?

Bear, Inc.estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year.They have, and desire, a 25% ending inventory of finished goods.Each unit sells for $35.40% of the sales are for cash.70% of the credit customers pay within the quarter.The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

The budget itself and the administration of the budget are the responsibility of the accounting department.

The production budget shows expected unit sales of 32,000.Beginning finished goods units are 3,600.Required production units are 33,600.What are the desired ending finished goods units?

The responsibility for expressing management's budgeting goals in financial terms is performed by the

The budget that is often considered to be the most important financial budget is the

A production budget should be prepared before the sales budget.

Astor Manufacturing has the following budgeted sales: January $120,000, February $180,000, and March $150,000.40% of the sales are for cash and 60% are on credit.For the credit sales, 50% are collected in the month of sale, and 50% the next month.The total expected cash receipts during March are:

The direct materials budget must be completed before the production budget because the quantity of materials available for production must be known.