Question 1

Budgeted manufacturing overhead costs include all types of factory expenses EXCEPT:

Accepted Answer

Budgeted manufacturing overhead costs exclude direct labor and direct materials, as these are considered part of the cost of goods sold or cost of production. All other types of factory expenses, including fixed and variable costs and indirect labor, are included in budgeted manufacturing overhead costs.

Question 2

Answer the following questions using the information below:
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2011:
 
-What are the 2012 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Accepted Answer

The budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead are $24,400, $122,000, and $36,600, respectively.

Question 3

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:
 
-How many pool cues need to be produced in 2012?

Accepted Answer

The answer of Answer the following questions using the information...

Question 4

Direct material purchases equal:

Accepted Answer

Direct material purchases are calculated by adding production needs to target ending inventories and then subtracting beginning inventories.

Question 5

The direct materials usage budget is based on:

Accepted Answer

The direct materials usage budget is based on the units to be produced during a period because the amount of direct materials needed depends on the number of units being produced. The budget will consider the quantity of materials required for a unit and multiply it by the number of units to be produced. Therefore, option A is the correct answer. Options B, C, and D do not relate to the direct materials usage budget.

Question 6

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:
 
-On the 2012 budgeted income statement, what amount will be reported for sales?

Accepted Answer

The answer of Answer the following questions using the information...

Question 7

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:
 
-On the 2012 budgeted income statement, what amount will be reported for cost of goods sold?

Accepted Answer

The correct amount for cost of goods sold on the 2012 budgeted income statement is $272,000.

Question 8

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation, a retailer:
 
-For January, budgeted gross margin is:

Accepted Answer

The answer of Answer the following questions using the information...

Question 9

Answer the following questions using the information below:
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2011:
 
-On the 2012 budgeted income statement, what amount will be reported for cost of goods sold?

Accepted Answer

The answer of Answer the following questions using the information...

Question 10

Answer the following questions using the information below:
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2011:
 
-On the 2012 budgeted income statement, what amount will be reported for sales?

Accepted Answer

The answer of Answer the following questions using the information...

Question 11

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory?

Accepted Answer

The answer of Wilcox Company has budgeted sales volume of...

Question 12

Grandma's Baskets Company expects to manufacture and sell 50,000 baskets in 2011 for $5 each. There are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 2011 budgeted income statement?

Accepted Answer

The sales revenue is calculated by multiplying the number of baskets expected to be sold (50,000) by the price per basket ($5), resulting in $250,000.

Question 13

Individual budgeted amounts included in the manufacturing overhead costs budget are based on input from:

Accepted Answer

The individual budgeted amounts in the manufacturing overhead costs budget are based on input from operating personnel, costs incurred in prior years, as well as cost changes expected in the future. Therefore, all of the given options are correct.

Question 14

For next year, Manzo, Inc., has budgeted sales of 30,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year?

Accepted Answer

To determine how many units should be produced, we need to use the following formula:

Units to be produced = budgeted sales + target ending finished goods inventory - beginning finished goods inventory

Therefore, units to be produced = 30,000 + 1,500 - 900 = 30,600 units.

Hence, the correct answer is choice letter C.

Question 15

The manufacturing overhead costs budget includes budgeted amounts for:

Accepted Answer

The manufacturing overhead costs budget includes budgeted amounts for all of these categories: indirect materials, indirect manufacturing labor, and depreciation on factory equipment.

Question 16

Answer the following questions using the information below:
Elton, Inc., expects to sell 6,000 ceramic vases for $40 each. Direct materials costs are $4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2011:
 
-How many ceramic vases need to be produced in 2012?

Accepted Answer

The answer of Answer the following questions using the information...

Question 17

The cost of goods sold budget requires all of the following budgets EXCEPT:

Accepted Answer

The cost of goods sold budget includes all the costs related to producing and selling the products, such as direct materials, direct manufacturing labor, and manufacturing overhead costs. However, distribution cost budget is not included in the cost of goods sold budget, as distribution costs are related to the selling and delivery of the products, not their production.

Question 18

Basile Corporation has budgeted sales of 36,000 units, target ending finished goods inventory of 6,000 units, and beginning finished goods inventory of 1,800 units. How many units should be produced next year?

Accepted Answer

The number of units to be produced can be calculated as follows:
Units to be produced = Budgeted sales + Target ending inventory - Beginning inventory
= 36,000 + 6,000 - 1,800
= 40,200 units. 
Therefore, the best choice is B.

Question 19

Answer the following questions using the information below:
The following information pertains to the January operating budget for Casey Corporation, a retailer:
 
-For January, the amount budgeted for the nonmanufacturing costs budget is:

Accepted Answer

The answer of Answer the following questions using the information...

Question 20

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:
 
-What are the 2012 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Accepted Answer

Direct materials cost = 20,000 pool cues x $4 = $80,000
Direct manufacturing labor cost = 20,000 pool cues x $8 = $160,000
Manufacturing overhead cost = 20,000 pool cues x $1.60 = $32,800

Quiz 6: Master Budget and Responsibility Accounting

Budgeted manufacturing overhead costs include all types of factory expenses EXCEPT:

Direct material purchases equal:

The direct materials usage budget is based on:

Answer the following questions using the information below: The following information pertains to the January operating budget for Casey Corporation, a retailer: -For January, budgeted gross margin is:

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory?

Individual budgeted amounts included in the manufacturing overhead costs budget are based on input from:

For next year, Manzo, Inc., has budgeted sales of 30,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year?

The manufacturing overhead costs budget includes budgeted amounts for:

The cost of goods sold budget requires all of the following budgets EXCEPT:

Basile Corporation has budgeted sales of 36,000 units, target ending finished goods inventory of 6,000 units, and beginning finished goods inventory of 1,800 units. How many units should be produced next year?

Answer the following questions using the information below: The following information pertains to the January operating budget for Casey Corporation, a retailer: -For January, the amount budgeted for the nonmanufacturing costs budget is: