1. Question : (TCO 7) The culmination of preparing operating budgets is the: pro forma balance sheet. production budget. cash budget. pro forma income statement. 2. Question : (TCO 7) The starting point in preparing a master budget is the preparation of the: production budget. sales budget. purchasing budget. personnel budget. 3. Question : (TCO 7) The production budget shows planned sales of 32,000. Beginning inventory is 5,600. Units to be produced are 33,600. What is the desired ending inventory? 4,000 5,600 6,400 7,200 4. Question : (TCO 7) If there were 20,000 pounds of raw materials on hand on January 1, 45,000 pounds are desired for inventory at January 31, and 295,000 pounds are required for January production, how many pounds of raw materials should be purchased in January? 295,000 pounds 315,000 pounds 320,000 pounds 360,000 pounds : 5. Question : (TCO 7) JKL Company expects the following sales and collection pattern for the indicated four months of the year: Month Cash Sales Credit Sales Total SalesJune $42,000 $82,000 $124,000July $36,000 $78,000 $114,000August $41,000 $80,000 $121,000September $38,000 $83,000 $121,000 •?????????8% of credit sales are collected in the same month•?????????72% of sales are collected in the following month•?????????15% of sales are collected in the second following monthWhat are the projected cash collections for the month of September? $75,940 $113,940 $118,090 $122,090
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
1. Question : (TCO 7) The culmination of preparing operating budgets is the:
pro forma
production budget.
cash
pro forma income statement.
2. Question : (TCO 7) The starting point in preparing a
production budget.
sales budget.
purchasing budget.
personnel budget.
3. Question : (TCO 7) The production budget shows planned sales of 32,000. Beginning inventory is 5,600. Units to be produced are 33,600. What is the desired ending inventory?
4,000
5,600
6,400
7,200
4. Question : (TCO 7) If there were 20,000 pounds of raw materials on hand on January 1, 45,000 pounds are desired for inventory at January 31, and 295,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
295,000 pounds
315,000 pounds
320,000 pounds
360,000 pounds
:
5. Question : (TCO 7) JKL Company expects the following sales and collection pattern for the indicated four months of the year:
Month Cash Sales Credit Sales Total Sales
June $42,000 $82,000 $124,000
July $36,000 $78,000 $114,000
August $41,000 $80,000 $121,000
September $38,000 $83,000 $121,000
•?????????8% of credit sales are collected in the same month
•?????????72% of sales are collected in the following month
•?????????15% of sales are collected in the second following month
What are the projected cash collections for the month of September?
$75,940
$113,940
$118,090
$122,090
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