Question 1

Budgeted production for product ZZZ during the month is

Accepted Answer

The question does not provide any information regarding the basis of budgeted production. Therefore, the most logical choice is the closest to the average or median of the given options, which is 457,000 units.

Question 2

What is the budgeted unit of production for February?

Accepted Answer

Budgeted sales for February are 222,000 units. The budgeted ending inventory is 46,000 units. The budgeted beginning inventory is 40,000 units. Therefore, the budgeted unit of production for February is 222,000 + 46,000 - 40,000 = 186,000 units.

Question 3

The number of pounds of materials A and B required for July production is

Accepted Answer

In the table, we can see that July production requires 45,000 units of finished product. To produce each unit, we need 5 lbs. of material A and 0.8 lbs. of material B. So the total pounds of material A required = 45,000 units x 5 lbs./unit = 225,000 lbs. And the total pounds of material B required = 45,000 units x 0.8 lbs./unit = 36,000 lbs. Therefore, the best choice is C, which matches these values.

Question 4

Budgeted production of Product A for the year would be

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Question 5

An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit.The desired ending inventory in units is 15% higher than the beginning inventory of 1,000 units.Total October sales are anticipated to be

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Question 6

Budgeted production for product XXX during the month is

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Question 7

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

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Question 8

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

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Question 9

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

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Question 10

Willow Valley's April sales forecast projects that 7,000 units will sell at a price of $10.50 per unit.The desired ending inventory is 30% higher than the beginning inventory, which were 1,000 units.Budgeted production in April would be

Accepted Answer

To calculate the budgeted production, we need to calculate the total units needed to meet the desired ending inventory and the units needed to fulfill the sales forecast.

Desired ending inventory = beginning inventory x 1.30 = 1,000 x 1.30 = 1,300 units 
Units needed to fulfill sales forecast = 7,000 units 
Total units needed = desired ending inventory + units needed to fulfill sales forecast = 1,300 + 7,000 = 8,300 units 
However, since there are already 1,000 units in beginning inventory, we only need to produce an additional 7,300 units (8,300 -1,000) to meet the demand and desired ending inventory. Therefore, option C is the correct answer.

Question 11

What is the budgeted unit of inventory for March 31?

Accepted Answer

The budgeted unit of inventory for March 31 can be computed by subtracting the budgeted unit sales from the budgeted ending inventory for March 31. Therefore, the budgeted unit inventory for March 31 is 46,000 (120,000 - 74,000 = 46,000).

Question 12

What is the budgeted unit of production for March?

Accepted Answer

The budgeted unit of production for March can be calculated by adding the beginning inventory (20,000), the units produced in March (200,000) and subtracting the ending inventory (6,000): 20,000 + 200,000 - 6,000 = 214,000. Therefore, option C is the correct answer.

Question 13

Total budgeted sales of both products for the year would be

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Question 14

What is the budgeted unit of production for January?

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Question 15

If the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is

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Question 16

Truliant Co.sells a product called Withitall and has predicted the following sales for the first four months of the current year:  Ending inventory for each month should be 20% of next month's sales.How many units should be produced in February?

Accepted Answer

To calculate the production for February, we need to first calculate the sales forecast for March.

Sales forecast for March = 1,400 + 1,600 + 1,900 = 4,900

Ending inventory for March = 20% of 4,900 = 980

So, the total need for March is 4,900 + 980 = 5,880

Ending inventory for February = 20% of 4,900 = 980

So, the total need for February is 4,900 + 980 = 5,880 - 1,940 (January sales forecast) = 3,940

Beginning inventory for February = 20% of 4,900 = 980

So, the production for February = total need for February - beginning inventory for February = 3,940 - 980 = 2,960

Therefore, the answer is A) 1,940

Question 17

Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May.

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Question 18

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

Accepted Answer

To calculate the direct materials purchases for materials A and B, we need to calculate the total direct materials required for July production.
For Material A, the total direct materials required for July production can be calculated as:
(20,000 units x 6 pounds per unit x $7 per pound) = $840,000
For Material B, the total direct materials required for July production can be calculated as:
(20,000 units x 4 pounds per unit x $9 per pound) = $720,000
Therefore, the total direct materials purchases for materials A and B can be calculated as follows:
For Material A: $840,000
For Material B: $720,000 x 0.975 (discount) = $702,000
Total direct materials purchases = $840,000 + $702,000 = $1,542,000
However, this calculation assumes that there is no beginning or ending material inventory required for July production. Since the question specifies this assumption, we need to adjust the calculation accordingly.
From the information given, we know that the ending inventory for both materials A and B must be equal to 10% of the next month's production needs. Therefore, for July production, the ending inventory needs to be:
For Material A: 20,000 x 0.1 = 2,000 units x 6 pounds per unit x $7 per pound = $84,000
For Material B: 20,000 x 0.1 = 2,000 units x 4 pounds per unit x $9 per pound = $72,000
To adjust the calculation for direct materials purchases, we subtract the ending inventory from the total direct materials required for July production. Therefore, we get:
For Material A: $840,000 - $84,000 = $756,000
For Material B: $720,000 x 0.975 - $72,000 = $648,000
Total direct materials purchases = $756,000 + $648,000 = $1,404,000
Therefore, the best choice is C, $1,170,000 for A; $702,000 for B.

Question 19

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

Accepted Answer

The production budget provides the starting point for the preparation of the direct labor cost budget because it specifies the amount and timing of production, which in turn affects the amount of labor needed to produce the units.

Question 20

If the expected sales volume for the current period is 9,000 units, the desired ending inventory is 200 units, and the beginning inventory is 300 units, the number of units set forth in the production budget, representing total production for the current period, is

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