Exam 20: Master Budgets and Performance Planning

In preparing a budgeted balance sheet,the dollar amount of Accounts Receivable can be derived from:

Masterson Company's budgeted production calls for 56,000 units in April and 52,000 units in May of a key raw material that costs $1.85 per unit.Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials.The April 1 inventory for this material is 16,800 units.What is the budgeted materials purchases for April?

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales.It estimates that May's ending inventory will consist of 14,000 units.June and July sales are estimated to be 280,000 and 290,000 units,respectively.Compute the number of units to be produced in June.

The sales budget for Modesto Corp.shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12,respectively.The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units.The beginning inventory of Product B is 2,500 units.The desired ending inventory of Product B is 3,000 units.Budgeted purchases of Product A for the year would be:

Ruiz Co.provides the following unit sales forecast for the next three months: The company wants to end each month with ending finished goods inventory equal to 10% of the next month's sales.Finished goods inventory on December 31 is 300 units. -The budgeted production units for January are:

If applied correctly,budgeting may have a positive effect on employee motivation.

Use the following information to prepare the June cash budget for Springer Company.It should show expected cash receipts and cash payments for the month and the cash balance expected on June 30. a.Beginning cash balance on June 1 is $52,000. b.Cash receipts from sales are expected to be $1,625,000. c.Cash payments for direct materials and direct labor are expected to be $246,500 and $573,100,respectively. d.Budgeted cash payments for variable overhead is $340,000. e.Budgeted depreciation,the only fixed overhead estimated for June: $24,000. f.Cash selling and administrative expenses budgeted for June are $282,000. g.Bank loan interest due in June: $8,000. i.Loan payment of $50,000 should be made if the preliminary cash balance is greater than $200,000.

Wichita Industries' sales are 10% cash and 90% on credit.Credit sales are collected as follows: 30% in the month of sale,50% in the next month,and 20% in the second following month.On December 31,the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales.Assume that total sales for January are budgeted to be $50,000.What are the expected cash receipts for January from the current and past sales?

Which of the following would not be used in preparing a cash budget for October?

If a merchandiser's budgeted beginning inventory is $8,300,budgeted ending inventory is $9,400,and cost of goods sold is expected to be $10,260,then budgeted purchases should be $11,360.

The merchandise purchases budget is the starting point for preparing the master budget of a merchandiser.

Assuming a bottom-up process of budget development,which of the following should be initially responsible for developing sales estimates?

The master budget process usually begins with the preparation of the ________ and usually finishes with the preparation of the ________,the ________,and the ________.

The usual starting point in the budgeting process is a plan showing the planned sales units and the revenue expected from these sales.This plan is called the:

The master budgeting process typically begins with the sales budget and ends with a cash budget and:

Southland Company is preparing a cash budget for August.The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash payments during August.Southland Company wants to maintain a minimum cash balance of $10,000.To maintain the minimum cash balance of $10,000,the company must borrow:

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase.The December Accounts Payable balance is $6,500.The budgeted cash payments for materials in January are:

Operating budgets include all the following except the:

Dado,Inc.is preparing its budget for the second quarter.The following unit sales are forecasted: Prepare a merchandise purchases budget for the total units to be purchased in each of the months of April,May,and June,as well as the total unit purchases for the entire quarter.

The ________ ,prepared by manufacturing firms,shows the number of units to be produced in a period based on the unit sales projected in the sales budget,along with inventory considerations.