Name Acct 202 Spring 2018 Test 2 Comstock Warren 13th Chapter 6,7 Budgets Choose
ID: 2553270 • Letter: N
Question
Name Acct 202 Spring 2018 Test 2 Comstock Warren 13th Chapter 6,7 Budgets Choose the best answer. 1. A company's planned borrowings and repayments appear on the: a. production budget. b. operating budget. c. interest income budget. d. cash budget. 2. Rodriquez Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Rodriquez's policy is to have 20% of the following month's sales in inventory. On January 1, inventory equaled 7,500 units. February production in units is: a. 20,000. b. 28,000. c. 40,000. d. 26,500. e. 24,000 for the first quarter: January 30,000 February 20,000 March 40,000 Each unit requires 3 pounds of raw material. Diamond's policy is to have 20% of the following month's production needs for materials in inventory. Orn January 1, the raw materials inventory equaled 11,000 pounds. Raw materials purchases budgeted for February in pounds equal: a. 72,000 b. 32,000. C. 91,000. d. 30,000. e. 54,000.Explanation / Answer
Answers
1.
A company's planned borrowings and repayments appear on the d. cash budget.
2.
Given
Rodriquez Company Budgeted Sales in Units
January = 30,000
February = 20,000
March = 40,000
Planned Ending Inventory = 20% of Following Month Production
Beginning Inventory = 20% of Month Production
Now,
February Budget Production in Units = Expected Sales in Units + Planned Ending Inventory in Units - Beginning Inventory in Units
= 20,000 + (40,000 x 20%) - (20,000 x 20%)
= 20,000 + 8000 - 4000 = 28,000 - 4000
= 24,000
Hence
Answer is
3.
Given,
Diamond Company Budgeted Prduction
January = 30,000
Fecruary = 20,000
March = 40,000
Raw Material Per Unit = 3 pounds
Desired Inventory = 20% of Following Month Production
Beginning Inventory = 20% of Month Production
Now,
Now,
Raw Material Purchase Budget = Raw Materials for Production + Desired Ending Inventory - Begining Inventory
= (20,000 x 3) + (120,000 x 20%) - (60,000 x 20%)
= 60,000 + 24,000 - 12,000
= 84,000 - 12,000
= 72,000
Hence
Answer is
9.
Given,
Birrell Company Manufacture Budget
May = 20,000
June = 40,000
July = 35000
Direct Labor Time Required = 30 minutes = 0.5 hrs
Cost per Direct Labour Hrs = $15
Direct Labor Cost Budget = Planned Production x Direct Labor Time Required x Cost per Direct Labor Hrs
= 40,000 x 0.5 x 15 = 20,000 x 15
= 300,000
Hence
Answer is
10.
Given,
Sorrell Company Sales
May = $100,000
June = $120,000
July = $130,000
August (Expected) = $150,000
Account Receivable is
30 % in Month Of Sale
60 % in Following Month after Sale
8 % in Second Month after Sale
The Total Sale of month of May = $100,000
Hence,
May Sales Uncollectible = Total Sale - Total Collection = $100,000 - $98,000
= $2,000
Hence,
Answer is
11.
True, The budget can be a powerful motivational tool.
e. 24,000Related Questions
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