Question 1

-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 2

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

Accepted Answer

Based on the given information, each unit of finished product requires 3 pounds of material A and 0.5 pounds of material B. For July production of 26,000 units, the total pounds of material A required would be:
26,000 units x 3 lbs. of A per unit = 78,000 lbs. of A
Similarly, the total pounds of material B required would be:
26,000 units x 0.5 lbs. of B per unit = 13,000 lbs. of B
Only option C matches these requirements with 234,000 pounds of material A and 39,000 pounds of material B.

Question 3

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

Accepted Answer

The production budget provides information on the number of units to be produced during the budget period. This information is necessary for determining the amount of direct labor needed to produce these units, making the production budget the starting point for the preparation of the direct labor cost budget. The other options, such as the direct materials purchases budget or cash budget, do not provide the relevant information for determining direct labor costs. The sales budget may indirectly impact the direct labor cost budget, but it is not the starting point for its preparation.

Question 4

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 5

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

Accepted Answer

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Question 6

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

Accepted Answer

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Question 7

Budgeted production for product ZZZ during the month is

Accepted Answer

The correct answer is based on the calculation or information provided in the question, which specifically mentions the budgeted production for product ZZZ as 457,000 units.

Question 8

Total budgeted sales of both products for the year would be

Accepted Answer

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Question 9

-What is the budgeted unit of production for January?

Accepted Answer

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-What is the budgeted unit of production...

Question 10

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

Accepted Answer

The budgeted total sales for April can be calculated by adding the estimated sales for each product:
$80,000 + $70,000 + $50,000 + $50,000 = $250,000. Therefore, the correct answer is D.

Question 11

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

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-The total direct materials purchases of materials...

Question 12

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

Accepted Answer

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Question 13

Budgeted production of Product A for the year would be

Accepted Answer

The budgeted sales revenue for the year is $612,000 and the sales price per unit is $30. Therefore, the budgeted sales volume for the year would be $612,000/$30 = 20,400 units (Option B).

Question 14

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

First, we need to calculate the desired ending inventory. If the beginning inventory is 1,000 units, then the desired ending inventory will be 30% higher, or 1,300 units (1,000 x 1.30 = 1,300).
Next, we need to determine the total number of units needed for April. This will be the forecasted sales plus the desired ending inventory, minus the beginning inventory. 
Forecasted sales = 7,000 units
Desired ending inventory = 1,300 units
Beginning inventory = 1,000 units
Total units needed = 7,000 + 1,300 - 1,000 = 7,300 units.
Therefore, the budgeted production in April would be 7,300 units.

Question 15

-What is the budgeted unit of production for February?

Accepted Answer

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-What is the budgeted unit of production...

Question 16

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

Accepted Answer

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Question 17

-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 18

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

Accepted Answer

To find the total October sales, we need to first calculate the desired ending inventory.

Beginning inventory = 1,000 units 
Desired ending inventory = 1,000 units + 15% * 1,000 units = 1,150 units

Now, we can calculate the total number of units sold:

Total units sold = Beginning inventory + Units produced – Desired ending inventory

We are not given information about units produced, so we will assume it is equal to the total units sold plus the desired ending inventory:

Units produced = Total units sold + Desired ending inventory 
Units produced = 7,000 units + 1,150 units = 8,150 units

Total October sales = Units sold × Price per unit 
Total October sales = 7,000 units × $11.50 per unit = $80,500

Therefore, the best choice is B.

Question 19

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

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Question 20

Budgeted production for product XXX during the month is

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Quiz 21: Budgeting