1. Which of the following represents the normal sequence in which the indicated budgets are prepared?...
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1. Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales B. Production, Cash, Income Statement C. Sales, Balance Sheet, Direct Labor D. Production, Manufacturing Overhead, Sales 2. Budgeted production needs are determined by: A. adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total. B. adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. C. adding budgeted sales in units to the desired ending inventory in units D. deducting the beginning inventory in units from budgeted sales in units 3. The budgeted amount of raw materials to be purchased is determined by: A. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule B. subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule C. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials D. adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials 4. |ABC Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, ABC Company's production of Product W for the month of April should be: A. 65,000 units B. 60,000 units C. 75,000 units D. 66,000 units 5. Shown below is the sales forecast for CC Inc. for the first four months of the coming year. Cash sales Credit sales. Jan $15,000 $100,000 Feb $24,000 $120,000 Mar Apr $14,000 $18,000 $90,000 $70,000 On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: A. $ 122,000 B. $ 138,000 C. $ 119,000 D. $ 108,000 6. PEACH Company has budgeted production for next year as follows: Quarter First Production in units............ 60,000 Second Third 80,000 90,000 A. 82,500 pounds B. 165,000 pounds C. 200,000 pounds D. 205,000 pounds Fourth 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: 1. Which of the following represents the normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales B. Production, Cash, Income Statement C. Sales, Balance Sheet, Direct Labor D. Production, Manufacturing Overhead, Sales 2. Budgeted production needs are determined by: A. adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total. B. adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. C. adding budgeted sales in units to the desired ending inventory in units D. deducting the beginning inventory in units from budgeted sales in units 3. The budgeted amount of raw materials to be purchased is determined by: A. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule B. subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule C. adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials D. adding the beginning inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the desired ending inventory of raw materials 4. |ABC Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 25,000 units of Product W in the ending inventory. Given this information, ABC Company's production of Product W for the month of April should be: A. 65,000 units B. 60,000 units C. 75,000 units D. 66,000 units 5. Shown below is the sales forecast for CC Inc. for the first four months of the coming year. Cash sales Credit sales. Jan $15,000 $100,000 Feb $24,000 $120,000 Mar Apr $14,000 $18,000 $90,000 $70,000 On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: A. $ 122,000 B. $ 138,000 C. $ 119,000 D. $ 108,000 6. PEACH Company has budgeted production for next year as follows: Quarter First Production in units............ 60,000 Second Third 80,000 90,000 A. 82,500 pounds B. 165,000 pounds C. 200,000 pounds D. 205,000 pounds Fourth 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
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Auditing a risk based approach to conducting a quality audit
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