College Acct 2- Chapter 8

Front

Each unit of finished goods requires 4 pounds of raw materials. The ending finished goods inventory equals 10% of the following month's sales. The ending raw materials inventory equals 40% of the following month’s raw materials production needs. If 50,600 pounds of raw materials are required for production in June, then the budgeted raw material purchases for May is closest to:

Back

42,056 pounds

Front

How many units should the company plan on producing for the month of February? January expected sales: 440,000, January desired ending inventory: 40,000, February expected sales: 400,000, February desired ending inventory: 42,000, March expected sales: 420,000, March desired ending inventory: 40,000

Back

402,000 units

Front

Sedita Inc. is working on its cash budget for April. The budgeted beginning cash balance is $32,000. Budgeted cash receipts total $175,000 and budgeted cash disbursements total $164,000. The desired ending cash balance is $50,000. What is the excess (deficiency) of cash available over disbursements for April?

Back

$43,000

Front

When preparing a direct materials budget, the required purchases of raw materials in units equals:

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raw materials needed to meet the production schedule + desired ending inventory of raw materials − beginning inventory of raw materials.

Front

Which of the following is typically the first step in creating a master budget? Options: the sales forecast or sales budget, the cash flow budget, the direct labor budget, the overhead budget.

Back

the sales forecast or sales budget.

Front

Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $20,000. Budgeted cash receipts total $175,000 and budgeted cash disbursements total $190,000. The desired ending cash balance is $30,000. The excess (deficiency) of cash available over disbursements for January is:

Back

$5,000

Front

The total number of units produced in July should be:

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5,570 units

Front

What is the budgeted direct labor cost per Pod for Smith Corporation, which requires 2.2 direct labor-hours at $10.20 per direct labor-hour?

Back

$22.44

Front

What is the total budgeted manufacturing overhead for May if the budgeted variable manufacturing overhead is $3.50 per direct labor-hour, the budgeted fixed manufacturing overhead is $65,000 per month (including $15,000 for factory depreciation), and the budgeted direct labor time for May is 5,000 hours?

Back

$82,500

Front

What is the estimated direct labor cost for Pabon Corporation in August if budgeted unit sales are 11,100 units, each requiring 3.5 direct labor-hours at a wage rate of $17.00 per hour?

Back

$696,150