Question 1

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

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The answer of For February, sales revenue is $700,000; sales...

Question 2

The number of pounds of Materials A and B required for August production is

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The answer of The number of pounds of Materials A...

Question 3

The operating budgets of a company includes the

Accepted Answer

The operating budget of a company includes budgets related to operating activities such as production, sales, materials, labor, and overhead. The production budget outlines the number of units that must be produced to meet sales demand, which will affect the materials and labor budgets. Therefore, the production budget is an essential part of the operating budget.

Question 4

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

Accepted Answer

- Sales commissions = 5% of $700,000 = $35,000
- Shipping expenses = 2% of $700,000 = $14,000
- Miscellaneous selling expenses = $2,100 + (0.5/100)*$700,000 = $5,100
- Total selling expenses = $98,000 + $90,000 + $35,000 + $14,000 + $5,100 = $242,600

Question 5

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 direct materials 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

Accepted Answer

To calculate the dollar amount of material A used in production during the year, first determine the total amount of material A needed for production. This is done by calculating the total units to be produced (budgeted sales + desired ending inventory - beginning inventory = 640,000 + 90,000 - 108,000 = 622,000 units). Then, multiply the total units by the amount of material A per unit (622,000 units * 0.50 lb. = 311,000 lbs.). Finally, multiply the total pounds of material A by its cost per pound (311,000 lbs. * $0.70 = $217,700).

Question 6

Budgeted production for product ZZZ during the month is

Accepted Answer

The budgeted production for product ZZZ during the month is calculated as follows:
Beginning inventory: 25,000 units
Expected sales: 380,000 units
Desired ending inventory: 8,000 units
Total production needed: Beginning inventory + Expected sales - Desired ending inventory
= 25,000 + 380,000 - 8,000
= 397,000 units
Therefore, the best choice is C)397,000 units.

Question 7

Production and sales estimates for March for the Robin Co.are as follows:  The number of units expected to be manufactured in March is

Accepted Answer

The number in the middle row (Production) and last column (Total) indicates the expected quantity of units to be manufactured in March, which is 27,600.

Question 8

For March, sales revenue is $1,000,000; sales commissions are 5% of sales; the sales manager's salary is $80,000; advertising expenses are $65,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,100 plus 1% of sales.Total selling expenses for the month of March are

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The answer of For March, sales revenue is $1,000,000; sales...

Question 9

Production and sales estimates for June are as follows:  The budgeted total sales for June is

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The answer of Production and sales estimates for June are...

Question 10

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

Accepted Answer

The first budget prepared in a master budget is usually the sales budget, which estimates the expected sales revenue for the upcoming period. This provides the basis for all subsequent budgets, such as the production budget, cash budget, and direct materials purchases budget.

Question 11

Production and sales estimates for June are as follows:  The number of units expected to be manufactured in June is

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The answer of Production and sales estimates for June are...

Question 12

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

Accepted Answer

Total production needed = Expected sales + Desired ending inventory - Beginning inventory
Total production needed = 8,000 + 1,400 - 1,200
Total production needed = 8,200 units, which is option B.

Question 13

The dollar amount of Material C used in production during the year is

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The answer of The dollar amount of Material C used...

Question 14

Budgeted production for product XXX during the month is

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The answer of Budgeted production for product XXX during the...

Question 15

Production and sales estimates for May for the Cardinal Co.are as follows:  The number of units expected to be sold in May is

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The answer of Production and sales estimates for May for...

Question 16

The total direct materials purchases assuming no beginning or ending inventory of material of Materials A and B required for August production is

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The answer of The total direct materials purchases assuming no...

Question 17

The dollar amount of Material B used in production during the year is

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The answer of The dollar amount of Material B used...

Question 18

Budgeted sales for the month are

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The answer of Budgeted sales for the month are
...

Question 19

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

Accepted Answer

To calculate the budgeted production, we need to take into account the projected sales, the desired ending inventory, and the beginning inventory.

Beginning inventory: 6,500 units 
Desired ending inventory: 6,000 units 
Projected sales: 78,000 units

To find the budgeted production:

Budgeted production = Projected sales + Desired ending inventory - Beginning inventory 
Budgeted production = 78,000 + 6,000 - 6,500 
Budgeted production = 77,500 units

Therefore, the correct answer is choice C.

Question 20

Which of the following budgets is not directly associated with the production budget?

Accepted Answer

The production budget is directly related to the direct materials purchases budget and the direct labor cost budget as they are both necessary for the production process. The sales budget is also related as it helps determine how much product needs to be produced. However, the capital expenditures budget is not directly related to the production budget as it deals with long-term investments in assets such as property, plant, and equipment.

Quiz 6: Budgeting