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Production and sales estimates for March for the Win Co. are as follows:
Estimated inventory (units), March 1 17,896
Desired inventory (unit), March 31 19,263
Expected sales volume (units):
Area M 6,883
Area L 9,042
Area O 7,153
Unit sales price $16.00
What is the number of units expected to be manufactured in March?
Select the correct answer.
a. 24,445
b. 43,708
c. 23,078
d. 5,182

a. 24,445

Below is budgeted production and sales information for Fleming Company for the month of December:
Product X Product Y
Estimated beginning inventory 29,036 units 19,322 units
Desired ending inventory 34,681 units 159,179 units
Region I, anticipated sales 343,240 units 251,583 units
Region II, anticipated sales 190,967 units 146,935 units
The unit selling price for product X is $4 and for product Y is $13.
What is the budgeted production for product X during the month?
Select the correct answer.
a. 539,852 units
b. 534,207 units
c. 568,888 units
d. 528,562 units

a. 539,852 units

Motorcycle Manufacturers, Inc. projected sales of 59,122 machines for 2012. The estimated January 1, 2012, inventory is 6,637 units, and the desired December 31, 2012, inventory is 7,280 units. What is the budgeted production (in units) for 2012?
Select the correct answer.
a. 58,479
b. 59,122
c. 45,205
d. 59,765

d. 59,765

The primary difference between a static budget and a flexible budget is that a static budget
a. Is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.
b. Is suitable in volatile demand situation while flexible budget is suitable in a stable demand situation.
c. Is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.
d. Includes only fixed costs, whereas a flexible budget includes only variable costs.

a. Is a plan for a single level of production, whereas a flexible budget can be converted to any level of production

Crow Manufacturers, Inc. projected sales of 75,000 bicycles for 2012. The estimated January 1, 2012, inventory is 5,000 units, and the desired December 31, 2012, inventory is 8,000 units.
What is the budgeted production (in units) for 2012?

78,000 units

Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 623,606 units, estimated beginning inventory is 108,122 units, and desired ending inventory is 83,551 units. The quantities of direct materials expected to be used for each unit of finished product are given below.
Material A .50 lb. per unit @ $0.63 per pound
Material B 1.00 lb. per unit @ $2.01 per pound
Material C 1.20 lb. per unit @ $0.85 per pound
What is the dollar amount of direct material A used in production during the year?
Select the correct answer.
a. $196,436
b. $611,016
c. $188,696
d. $1,204,060

c. $188,696

Below is budgeted production and sales information for Fleming Company for the month of December:
Product X Product Y
Estimated beginning inventory 28,238 units 19,914 units
Desired ending inventory 36,042 units 143,467 units
Region I, anticipated sales 338,625 units 271,662 units
Region II, anticipated sales 190,666 units 140,808 units
The unit selling price for product X is $7 and for product Y is $14.
What are the budgeted sales for the month?
Select the correct answer.
a. $10,297,364
b. $13,184,654
c. $6,592,327
d. $9,479,617

d. $9,479,617

Sweet Dreams, Inc. manufactures bedding sets. The budgeted production is for 52,000 comforters in 2012. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labor costs $11.00 per hour, determine the direct labor budget for 2012.

$858,000

Production and sales estimates for March for the Win Co. are as follows:
Estimated inventory (units), March 1 17,298
Desired inventory (unit), March 31 19,704
Expected sales volume (units):
Area M 6,642
Area L 8,753
Area O 7,044
Unit sales price $12.00
What is the number of units expected to be sold in March?
Select the correct answer.
a. 22,439
b. 44,549
c. 24,845
d. 5,141

a. 22,439

Magnolia, Inc. manufactures bedding sets. The budgeted production is for 55,000 comforters in 2012. Each comforter requires 7 yards of material. The estimated January 1, 2012, beginning inventory is 31,000 yards. The desired ending balance is 30,000 yards of material. If the material costs $4.00 per yard, determine the materials budget for 2012.

$1,536,000

Consider the following budget information: materials to be used totals $62,156; direct labor totals $201,303; factory overhead totals $403,560; work in process inventory January 1, 2012, was expected to be $187,747; and work in progress inventory on December 31, 2012, is expected to be $190,158. What is the budgeted cost of goods manufactured?
Select the correct answer.
a. $664,608
b. $190,158
c. $667,019
d. $1,044,924

a. $664,608

If the expected sales volume for the current period is 7,796 units, the desired ending inventory is 228 units, and the beginning inventory is 333 units, what is the number of units set forth in the production budget, representing total production for the current period?
Select the correct answer.
a. 8,024
b. 7,691
c. 7,796
d. 7,463

b. 7,691

A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:
a. Master budgeting.
b. Continuous budgeting.
c. Flexible budgeting.
d. Zero-based budgeting.

b. Continuous budgeting.

Which of the following budgets provides the starting point for the preparation of the direct labor cost budget?
a. Direct materials purchases budget
b. Production budget
c. Sales budget
d. Cash budget

b. Production budget

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. Which of the following is not considered a human behavior problem?
a. Allowing employees the opportunity to be a part of the budget process.
b. Setting goals among managers that conflict with one another.
c. Allowing goals to be so low that employees develop a "spend it or lose it" attitude.
d. Setting goals too tightly making it difficult to meet performance expectation.

a. Allowing employees the opportunity to be a part of the budget process.

The budget that needs to be completed first when preparing the master budget is the:
a. Cash Budget.
b. Production Budget.
c. Sales Budget.
d. Capital Expenditures Budget.

c. Sales Budget.

A formal written statement of management's plans for the future, expressed in financial terms, is a:
a. Responsibility report.
b. Budget.
c. Gross profit report.
d. Performance report.

b. Budget.

The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a:
a. Responsibility center.
b. Budgetary area.
c. Managerial department.
d. Control center.

a. Responsibility center

When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing:
a. Padding.
b. Budgetary slack.
c. Cushions.
d. Goal conflict.

d. Goal conflict.

The budget process involves doing all the following except:
a. Executing plans to achieve the goals.
b. Dismissing all managers who fail to achieve operational goals specified in the budget.
c. Establishing specific goals.
d. Periodically comparing actual results with the goals.

b. Dismissing all managers who fail to achieve operational goals specified in the budget.

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