Exam 20: Master Budgets and Performance Planning

A department store has budgeted sales of 12,000 men's coats in September.Management wants to have 6,000 coats in inventory at the end of the month to prepare for the winter season.Beginning inventory for September is expected to be 4,000 coats.What is the dollar amount of the purchase of suits if each coat has a cost of $75?

Cameroon Corp.manufactures and sells electric staplers for $16 each.If 10,000 units were sold in December,and management forecasts 4% growth in sales each month,the number of units of electric stapler sales budgeted for March should be:

Junior Snacks reports the following information from its sales budget: All sales are on credit and are expected to be collected 40% in the month of sale and 60% in the month following sale.The total amount of cash expected to be received from customers in November is:

A budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities is:

Boulware Company's budgeted production calls for 5,000 units in October and 8,000 units in November.Each unit requires 8 pounds (lbs.)of raw material A.Each month's ending inventory of raw materials should equal 20% of the following month's budgeted materials requirements.The October 1 inventory for this material is 8,000 pounds.What is the budgeted materials purchases in pounds for October?

A budget that plans the types and amounts of operating expenses expected that are not included in the selling expenses or manufacturing budget is a:

To develop the sales budget,companies must estimate both unit sales and the production cost per unit.

Match the definitions 1 through 9 with the correct term or phrase (a)through (i). -A managerial accounting report that shows predicted amounts of sales and expenses for the budget period.

Briefly describe a master budget and the sequence in which the individual budgets within the master budget are prepared.

Which of the following budgets is not an operating budget?

Employees who will have performance evaluated according to the budget standards should not be involved in preparing the budget.

A merchandiser,provides the following information for its December budgeting process: The November 30 inventory was 1,800 units. Budgeted sales for December are 4,000 units. Desired December 31 inventory is 2,840 units. Budgeted purchases are:

Schrank Company is trying to decide how many units of merchandise to order each month.Company policy is to 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 be purchased in September?

The process of evaluating performance can be improved by using budgets.

Walter Enterprises expects its September sales to be 20% higher than its August sales of $150,000.Purchases were $100,000 in August and are expected to be $120,000 in September.All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month.Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month.The beginning cash balance on September 1 is $7,500.The ending cash balance on September 30 would be:

The ________ shows the budgeted costs for factory overhead that will be needed to complete the estimated production for the period,often separated into variable and fixed costs.

Gardner Company expects sales for October of $248,000.Experience suggests that 45% of sales are for cash and 55% are on credit.The company collects 50% of its credit sales in the month of sale and 50% in the month following sale.Budgeted Accounts Receivable on September 30 is $67,000.What is the amount of Accounts Receivable on the October 31 budgeted balance sheet?

The master budget includes individual budgets for sales,production or merchandise purchases,various expenses,capital expenditures,and cash.

Stanley Company is preparing a cash budget for February.The company has $30,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $96,250 in cash payments during February.Stanley Company has an agreement with its bank to maintain a cash balance of $10,000.What amount,if any,must the company borrow at the end of February to maintain a $10,000 cash balance?

Memphis Company's May sales budget calls for sales of $900,000.The store expects to begin May with $50,000 of inventory and to end the month with $55,000 of inventory.Gross margin is typically 45% of sales.Compute the budgeted cost of merchandise purchases for May.