Q1) choose the most correct answer for the following problems

DBT expects to sell 25,000 units of finished goods over the next 6-month period. The company has 11,000 units on hand and its managers want to have 15,000 units on hand at the end of the period. To produce one unit of finished product, two units of direct materials are needed. DBT has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units.

1.What is the number of finished units to be produced?

a.38,000 b.28,000 c.20,000 d.24,000 e. none of these answers is correct

2.What is the amount of direct material to be purchased (in units)?

a.68,000 b.46,000 c.6,000 d.18,000 e. none of these answers is correct

A firm that manufactures glasses has budgeted production for the next four months as follows:

Units Produced

October 40,000

November50,000

December30,000

January 70,000

Each glass requires 30 grams of direct raw materials. The managers desire an ending inventory sufficient to meet 25% of the next months production. There is no beginning inventory of raw material in October.

3. What is the budgeted purchases of direct raw materials in grams for November?

a.450,000 b.1,650,000 c.1,350,000 d.900,000 e. none of these answers is correct

Steve Company uses the following flexible budget formula for monthly shipping cost: total cost = $700 + $0.40 per part. The annual operating budget calls for 35,000 units of production.

4. Budgeted shipping cost is

a. $14,000 b. $14,700 c.$22,400 d.$22,000 e. none of these answers is correct

5. The actual preparation of a budget usually begins with the

a. Production budget b. Cash budget c. Sales budget d. Direct materials budget

TAT Firm collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected.

Budgeted sales are all on credit and amount to:

May$600,000

June700,000

July500,000

August600,000

6. What is the budgeted amount of cash to be collected in July?

a. $560,000 b.$554,000 c.$558,000 d.$551,000 e. none of these answers is correct