Question 1

Cherry Inc.has forecast its sales for the coming months as follows:
  Cherry maintains finished goods inventory equal to 40% of the next month's sales requirements.April 1 inventories were 74 standard units and 72 economy.
Required:
Prepare a production schedule for April through June.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Budgeted Production Units = B...

Question 2

From a managerial perspective,which budget is most likely to motivate people to succeed in executing it?

Accepted Answer

A)  A budget that is tight,but attainable because it creates the appropriate level of challenge.
B)  A budget that is easy to achieve,because it inspires confidence.
C)  A budget that is difficult to achieve,because it encourages people to aim high.
D)  A budget that is tight,and nearly impossible to achieve,because it creates camaraderie and an "us versus them" mentality.E) A) and B)
F) A) and C)

Question 3

Budgeted manufacturing overhead includes indirect manufacturing costs,but not selling or administrative costs.

Accepted Answer

A) True 
 B)False

Question 4

When calculating the direct labor budget,the starting point should be:

Accepted Answer

A)  actual direct labor hours from the previous year.
B)  budgeted sales.
C)  budgeted production.
D)  budgeted cost of direct labor.E) All of the above
F) B) and D)

Question 5

Jared Inc.produces leather handbags.The sales budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 0.5 square meters of leather.Jared Inc.'s finished goods inventory policy is 10% of next month's sales needs.Jared Inc.'s leather inventory policy is 30% of next month's production needs.What will leather purchases be in August?

Accepted Answer

A)  3,425 square meters
B)  3,450 square meters
C)  3,508 square meters
D)  3,600 square metersE) C) and D)
F) A) and C)

Question 6

Boxwood Inc.has forecast purchases on account to be $620,000 in March,$740,000 in April,$840,000 in May,and $980,000 in June.Seventy percent of purchases are paid for in the month of purchase,the remaining 30% are paid in the following month.What is the budgeted Accounts Payable balance for June 30?

Accepted Answer

A)  $588,000
B)  $686,000
C)  $294,000
D)  $252,000E) A) and B)
F) All of the above

Question 7

The number of units included in the production budget:

Accepted Answer

A)  are always the same as the number of units in the sales budget.
B)  depends on the direct materials purchases budget.
C)  is based on the number of units in the sales budget,and increased for increases in the selling and administrative expense budget to account for increased demand.
D)  may differ from the number of units in the sales budget,depending on ending inventory goals.E) A) and D)
F) All of the above

Exam 8: Budgetary Planning

When calculating the direct labor budget,the starting point should be:

Correct Answer
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Boxwood Inc.has forecast purchases on account to be $620,000 in March,$740,000 in April,$840,000 in May,and $980,000 in June.Seventy percent of purchases are paid for in the month of purchase,the remaining 30% are paid in the following month.What is the budgeted Accounts Payable balance for June 30?

Correct Answer
verified

Correct Answer
verified

Budgeted manufacturing overhead includes indirect manufacturing costs,but not selling or administrative costs.

Correct Answer
verified

From a managerial perspective,which budget is most likely to motivate people to succeed in executing it?

Correct Answer
verified

The number of units included in the production budget:

Correct Answer
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Cherry Inc.has forecast its sales for the coming months as follows: Cherry maintains finished goods inventory equal to 40% of the next month's sales requirements.April 1 inventories were 74 standard units and 72 economy. Required: Prepare a production schedule for April through June.

Correct Answer
verified
Budgeted Production Units = B...
View Answer

Exam 8: Budgetary Planning

When calculating the direct labor budget,the starting point should be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Budgeted manufacturing overhead includes indirect manufacturing costs,but not selling or administrative costs.

Correct AnswerverifiedShow Answer

From a managerial perspective,which budget is most likely to motivate people to succeed in executing it?

Correct AnswerverifiedShow Answer

The number of units included in the production budget:

Correct AnswerverifiedShow Answer

Cherry Inc.has forecast its sales for the coming months as follows: Cherry maintains finished goods inventory equal to 40% of the next month's sales requirements.April 1 inventories were 74 standard units and 72 economy. Required: Prepare a production schedule for April through June.

Correct Answerverified Budgeted Production Units = B...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Budgeted Production Units = B...
View Answer