6. Which of the following statements is NOT correct concerning the Cash Budget? A. It is...
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6. Which of the following statements is NOT correct concerning the Cash Budget? A. It is not necessary to prepare any other budgets before preparing the Cash Budget. B. The Cash Budget should be prepared before the Budgeted Income Statement. C. The Cash Budget should be prepared before the Budgeted Balance Sheet. D. The Cash Budget builds on earlier budgets and schedules as well as additional data. 7. All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 A. $ 24,000 B. $ 37,000 C. $ 41,000 D. $ 51,000 E. None is the answer February $60,000 March $40,000 What is the amount of cash that should be collected in March? April $30,000 D 8. Parwin Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? A. 24,000 B. 22,000 C. 32,000 D. 31,000 E. None of the above. I 9. Bentsen Corporation makes one product. July 8,500 Budgeted unit sales A. $133,704 B. $ 131,520 C. $ 160,008 D. $ 146,856 E. None of the above. August 9,000 I September 13,900 The ending finished goods inventory equals 40% of the following month's sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $2.00 per pound. If 76,680 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to: October 11,100 10. Kesselring Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: Budgeted unit sales (all on credit): July August September Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) A. $ 358,192 B. $ 150,304 8,400 8,800 12,200 C. $ 304,512 D. $454,816 E. None of the above. 4 $ 3.00 2.8 $18.00 $ 11.00 D The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to: pounds per pound direct labor-hours per direct labor-hour per direct labor-hour 6. Which of the following statements is NOT correct concerning the Cash Budget? A. It is not necessary to prepare any other budgets before preparing the Cash Budget. B. The Cash Budget should be prepared before the Budgeted Income Statement. C. The Cash Budget should be prepared before the Budgeted Balance Sheet. D. The Cash Budget builds on earlier budgets and schedules as well as additional data. 7. All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company: Total sales January $50,000 A. $ 24,000 B. $ 37,000 C. $ 41,000 D. $ 51,000 E. None is the answer February $60,000 March $40,000 What is the amount of cash that should be collected in March? April $30,000 D 8. Parwin Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? A. 24,000 B. 22,000 C. 32,000 D. 31,000 E. None of the above. I 9. Bentsen Corporation makes one product. July 8,500 Budgeted unit sales A. $133,704 B. $ 131,520 C. $ 160,008 D. $ 146,856 E. None of the above. August 9,000 I September 13,900 The ending finished goods inventory equals 40% of the following month's sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $2.00 per pound. If 76,680 pounds of raw materials are required for production in September, then the budgeted cost of raw material purchases for August is closest to: October 11,100 10. Kesselring Corporation makes one product and has provided the following information to help prepare the master budget for the next three months of operations: Budgeted unit sales (all on credit): July August September Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) A. $ 358,192 B. $ 150,304 8,400 8,800 12,200 C. $ 304,512 D. $454,816 E. None of the above. 4 $ 3.00 2.8 $18.00 $ 11.00 D The ending finished goods inventory should equal 40% of the following month's sales. The budgeted finished goods inventory balance at the end of August is closest to: pounds per pound direct labor-hours per direct labor-hour per direct labor-hour
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6 Option A is correct Statement A is not correct regarding Cash Budget It is prepared after all the the functional budgets like sales purchases manufa... View the full answer
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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