44. When preparing a production budget, the quantity to be produced equals

1. Sales quantity + opening stock + closing stock
2. Sales quantity - opening stock + closing stock
3. Sales quantity - opening stock - closing stock
4. Sales quantity + opening stock - closing stock

45. BDL plc is currently preparing its cash budget for the year to 31 March 2003. An extract from its sales budget for the same year shows the following sales values:

$

March 60,000

April 70,000

May 55,000

June 65,000

40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after sales and take a 2% discount; 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts.

The value of sales receipts to be shown in the cash budget for May 2002 is:

1. $38,532
2. $39,120
3. $60,532
4. $64,220

46. A company is preparing a production budget for the next year. The following information is

relevant:

Budgeted sales 10,000 units

Opening stock 600 units

Closing stock 5% of budgeted sales

The production process is such that 10% of the units produced are rejected. What is the number of units required to be produced to meet demand?

1. 8900 units
2. 9900 units
3. 10 900 units
4. 11 000 units

47. Which of the following is the responsibility of the budget committee?

1. Taking corrective action to ensure that sales targets are achieved.
2. Ensuring the sales budget is consistent with other budgets.
3. Providing information on sales levels and prices in previous budget periods
4. Drawing up the sales budget

48. A company has the following budget for the next month:

Finished Product

Sales 7000 units

Production units 7200 units

Material

Usage per unit 3kg

Opening stock 400kg

Closing stock 500kg

What is the material purchases budget for the month?

1. 20 900 kg
2. 21 100 kg
3. 21 500 kg
4. 21 700 kg

The following estimates have been prepared for a retailer's next budget period: Using this information to answer questions 49-50

Total cost $

Sales 160,000

Opening debtors 27,500

Closing debtors 19,400

Opening stock 16,600

Closing stock 18,700

The gross profit margin on sales is budgeted at 55%.

49. The cash which the retailer expects to receive from customers during the budget period amounts to

1. $88,000
2. $151,900
3. $157,900
4. $168,100

50. The value of purchases made by the retailer during the budget period is expected to be

1. $69, 900
2. $74, 100
3. $85,900
4. $90,100