Exam 9: Reporting and Analyzing Long-Lived Assets

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:

Comma Co.makes and sells widgets.The company is in the process of preparing its selling and administrative expense budget for the month.The following budget data are available: Item Variable Cost Per Unit SoldMonthly Fixed cost Sales commissions \ 1 \ 10,000 Shipping \ 3 Advertising \ 4 Executive salaries \ 120,000 Depreciation on office equipment \ 4,000 Other \ 2 \ 6,000 Expenses are paid in the month incurred.If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

Which of the following statements about a budgeted income statement is not true?

The following information is taken from the production budget for the first quarter: Beginning inventory in units 1,200 Sales budgeted for the quarter 426,000 Capacity in units of production facility 472,000 How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter?

The following information was taken from Southgate Industry's cash budget for the month of July: Beginning cash balance \ 480,000 Cash receipts 304,000 Cash disbursements 544,000 If the company has a policy of maintaining a minimum end of the month cash balance of $400,000, the amount the company would have to borrow is

The budget committee in a company is often headed by the

Grey Company has 24,000 units in beginning finished goods.If sales are expected to be 120,000 units for the year and Grey desires ending finished goods of 30,000 units, how many units must the company produce?

Which of the following would not appear as a fixed expense on a selling and administrative expense budget?

The budget is developed within the framework of a sales forecast.

The master budget consists of operating and financial budgets.

Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.

Long-range planning

The master budget for a service enterprise

The direct materials and direct labor budgets provide information for preparing the

Which is the last step in developing the master budget?

Which of the following is not a proper match-up?

Lion Industries required production for June is 132,000 units.To make one unit of finished product, three pounds of direct material Z are required.Actual beginning and desired ending inventories of direct material Z are 300,000 and 330,000 pounds, respectively.How many pounds of direct material Z must be purchased?

The starting point in preparing a master budget is the preparation of the

Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July.There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds.If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

If budgets are to be effective, there must be