FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Planning and Forecasting

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

A company is preparing its cash budget for the first quarter of the year.It has $1,000 in cash at the beginning of the period.Cash sales for the quarter are budgeted at $30,000.Selling and administrative expenses are budgeted at $8,000,which includes $2,000 depreciation.Cash expenses are paid in the month incurred.Cash payment for inventory purchases are budgeted at $25,000.The desired cash balance on March 31 is $5,000.How much financing will the company need during the quarter?

A) $0
B) $2,000
C) $5,000
D) $7,000

E) C) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is a suggested source for forecasting sales for a new business?

A) Industry projections
B) Market data
C) Both industry projections and market data.
D) Neither industry projections nor market data.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 43

Multiple Choice

Review LaterAdd Note

Information from the manufacturing overhead budget flows to the

In the manufacturing of swim suits,in addition to the price of fabric,the standard materials price also includes

An imposed budget

The final component of the operating budget is the ending inventory and cost of goods sold budget.

Williams Company makes and sells laundry duffel bags. Each duffel bag sells for $20 and has a unit variable cost of $12. The company has provided the following budgeting data for March: Sales all cash sales $~~~~~~~~$$~~~~~ ~$$~~~~~~~~$$~~~~~~~~$ $34,000 Cash balance on March 1 $~~~ ~~~$$~~~~~~~~$ $~~~~~~~~$ 4,000 Cash disbursements during the month $~~~ ~~$ 36,000 A minimum cash balance on March $~~~~~~~~$ 31 4,000 If necessary, Williams will borrow cash from the local bank in multiples of $1,000. Required: a. How many units did Williams budget to sell during March? b. What is Williams’ budgeted cash balance at the end of the period before borrowing? c. How much should Williams budget for borrowing in January?

Kandy Harts manufactures custom T-shirts.Each T-shirt can be imprinted front and back with photos,company logos or other information.Each T-shirt requires 2 ounces of ink,15 minutes of direct labor processing,folding,packaging,and a plastic bag for packaging.The following information is available regarding costs: Kandy applied overhead at a rate of $9.40 per direct labor hour,and fringe benefits for workers are an additional 20% of wages.What is the standard price of producing one long-sleeve T-shirt?

Budgetary slack is also referred to as

Alexa Industries has the following amounts budgeted for selling and administrative expenses for February: What amount will Alexa report on its February cash budget for selling and administrative expenses?

Cooper Company,a retailer of camping supplies has budgeted activity for January using the following data: Required: Prepare a cash budget for January

Which of the following is $\textbf{ not }$ a component of the master budget?

The master budget is a collection of smaller budgets that lead to pro-forma financial statements.

Which of the following is not a component of the Cash Budget?

A bottom-up approach to budgeting is circular while a top-down approach is linear.

Rowen Company pays 80% of its expenses in the month incurred.Rowen's controller has developed the following budgeted amounts budgeted for selling and administrative expenses for July: What amount will Rowen report on its July pro-forma income statement for selling and administrative expenses?

You have recently accepted a position as a manager with Athletic Academy.At a recent managers meeting,the controller asked for input on how to make the budgeting process more effective.Specifically,the controller indicated that the employees did not seem to be committed to the budget during the previous period.Unfortunately,none of the managers reached their targeted sales projections for the previous period. Required: Explain to the other managers what method the company apparently used in the previous period and why the method created the lack of commitment. Also discuss flaws the alternative approach to budgeting.

Milligan Manufacturing Company produces and sells garden tools.The company has developed the following production plan for its new electric trimmer. Each unit requires three feet of metal tubing. The company wishes to have ending inventory equal to 110% of its next month’s production needs, plus an additional 100 feet. January’s beginning inventory meets this requirement. Milligan’s standard cost per foot is $2.80. Required Prepare the 1st quarter direct materials purchases budget for metal tubing.

Tanger Products plans to produce 10,000

Integrated purchases and cash payments budget Senegalese Specialties,a retailer of West African food products,has completed the sales forecast for the coming year: Senegalese Specialties maintains an ending inventory level of 60 percent of the following month’s cost of goods sold. The company’s cost of goods sold is 35 percent of sales. Required: a. Prepare Senegalese Specialties purchases budget for June and July. Use the following format: b.Assuming that Senegalese Specialties pays for 50 percent of its purchases in the month of purchase and the remaining 50 percent in the month following the purchase,prepare the company's cash payments budget for July.