BUDGETARY PLANNING mcq homework and questions
Wynn, Inc. manufactures beanies. The budgeted units to be produced and sold are below:
Expected Production Expected Sales
August 3,500 2,900
September 2,800 3,900
It takes 18 yards of yarn to produce a beanie. The company’s policy is to maintain yarn at the end of each month equal to 5% of next month’s production needs and to maintain a finished goods inventory at the end of each month equal to 20% of next month’s anticipated production needs. The cost of yarn is $0.20 a yard. At August 1, 3,150 yards of yarn were on hand.
Compute the budgeted cost of purchases.
The budget components for Birk Company for the quarter ended June 30 appear below. Birk sells trash cans for $12 each. Budgeted production for the next three months is:
April 26,000 units
May 46,000 units
June 29,000 units
Birk desires to have trash cans on hand at the end of each month equal to 20 percent of the following months budgeted sales in units. On March 31, Birk had 4,000 completed units on hand. Five pounds of plastic are required for each trash can. At the end of each month, Birk desires to have 10 percent of the following months production material needs on hand. At March 31, Birk had 13,000 pounds of plastic on hand. The materials used in production costs $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Compute the cost of the plastic inventory at the end of May.
Smoke, Inc. makes and sells buckets. Each bucket uses 1/2 pound of plastic. Budgeted production of buckets in units for the next three months is as follows:
April May June
Budgeted production 21,000 22,000 24,000
The company wants to maintain monthly ending inventories of plastic equal to 25% of the following month’s budgeted production needs. The cost of plastic is $2.20 per pound.
Prepare a direct materials purchases budget for the month of May.
The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted sales and production for the next three months are:
April 20,000 units 26,000 units
May 50,000 units 46,000 units
June 30,000 units 29,000 units
Park desires to have trash cans on hand at the end of each month equal to 20 percent of the following months budgeted sales in units. On March 31, Park had 4,000 completed units on hand. Five pounds of plastic are required for each trash can. At the end of each month, Park desires to have 10 percent of the following months production material needs on hand. At March 31, Park had 13,000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trash can produced requires 0.10 hours of direct labor.
Determine how much the materials purchases budget will be for the month ending April 30.
Jent Company reported the following information for 2013:
October November December
Budgeted sales $320,000 $340,000 $360,000
Budgeted purchases $120,000 $128,000 $144,000
· All sales are on credit.
· Customer amounts on account are collected 40% in the month of sale and 60% in the following month.
Compute the amount of cash Jent will receive during November.
Plack Company budgeted the following information for 2013:
May June July
Budgeted purchases $104,000 $110,000 $102,000
· Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
· Plack purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
· Selling and administrative expenses are budgeted at $30,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.
· Income taxes are $38,400 for July and are paid in the month incurred.
Compute the amount of budgeted cash disbursements for July.
Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:
Wages expense $120,000
Purchase of office equipment 200,000
Selling and administrative expenses 126,000
Depreciation expense 18,000
Compute the amount of budgeted cash disbursements for April.
Chain Inc. provided the following information:
April May June
Projected merchandise purchases $92,000 $80,000 $66,000
· Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
· General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Chain pays operating expenses in the month incurred.
· Chain makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Calculate budgeted cash disbursements for May.
Beal, Inc. provided the following information:
March April May
Projected merchandise purchases $65,000 $75,000 $80,000
· Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month.
· General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expenses in the month incurred.
Calculate Beals budgeted cash disbursements for May.
The beginning cash balance is $15,000. Sales are forecasted at $800,000 of which 80% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable from previous accounting periods totaling $9,000 will be collected in the current year. The company is required to make a $15,000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90,000, and the annual interest rate is 10%.
Compute the excess of cash receipts over cash disbursements.
Delta Manufacturing has budgeted the following unit sales:
Of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit.
Prepare separate sales budgets for each division and for the company in total for the second quarter of 2013.
Pitt Corp. makes and sells a single product, widgets. Two pounds of sand are needed to make one widget. Budgeted production of widgets for the next few months follows:
September 25,000 units
October 31,000 units
The company wants to maintain monthly ending inventories of sand equal to 20% of the following month’s production needs. On August 31, 10,000 pounds of sand were on hand.
How much sand should be purchased in September?
Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows:
Units of Product
2013 Regular Deluxe Total
July 10,000 15,000 25,000
August 6,000 10,000 16,000
September 9,000 14,000 23,000
October 8,000 12,000 20,000
It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company’s policy to maintain an inventory ofdirect materials on hand at the end of each month equal to 30% of the next month’s production needs for the Regular product and 20% of the next month’s production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 6,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $8 Deluxe.
Prepare separate direct materials budgets for each product for the third quarter of 2013.
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more