get accounting solutions Select the correct equation format for the purchases budget.a. Beginning inventory + expected sales = required purchasesb. Expected sales + Desired ending inventory = required purchasesc. Beginning inventory + expected sales - desired ending inventory =required purchasesd. Expected sales + desired ending inventory - beginning inventory =required purchases

The correct answer is:d. Expected sales + desired ending inventory - beginning inventory = required…

Answered: Select the correct equation format for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12MC: The units required in production each period are computed by which of the following methods? adding...

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Which one of the following is the equations is used in the production budget? Select one: a. Current period sale (in units) + Beginning inventory (in units) + Ending Inventory (Units) b. Current period sale (in units) + Beginning inventory (in units) - Ending Inventory (Units) c. Current period sale (in units) - Beginning inventory (in units) - Ending Inventory (Units) d. Current period sale (in units) - Beginning inventory (in units) + Ending Inventory (Units)
The units required in production each period are computed by which of the following methods? adding budgeted sales to the desired ending inventory and subtracting beginning inventory adding beginning inventory, budgeted sales, and desired ending inventory adding beginning inventory to budgeted sales and subtracting desired ending inventory adding budgeted sales to the beginning inventory and subtracting the desired ending inventory.
Which of the following is least likely to affect the preparation of the purchases budget? A.The amount of inventory stock available to purchase from suppliers. B.How easy it is to transport inventory from delivery trucks to the warehouse. C.The amount of warehouse space available. D.The shelf life of inventory.
Which of the following appears on the budgeted balance sheet? * A. estimated sales B. estimated cost of goods sold C. estimated fixed selling expense D. estimated ending accounts receivable
Before a direct materials purchases budget can be prepared, you should firsta. prepare a sales budget.b. prepare a production budget.c. decide on the desired ending inventory of materials.d. obtain the expected price of each type of material.e. All of these
When preparing a production budget, the required production equals: 1. budgeted sales+beginning inventory+desired ending inventory 2. budgetd sales-beginning inventory+desired ending inventory 3.budgeted sales-beginning inventory+desired ending inventory 4. budgeted sales+ beginning inventory-desired ending inventory
Required production during a planning period will depend on the: Multiple Choice cost of beginning inventory of products. credit sales during the period. desired level of beginning inventory. desired level of ending inventory.
Classify the following items as either: TPS—transaction processing system FRS—financial reporting system MRS—management reporting system 1. Variance reports 2. Sales order capture 3. Balance sheet 4. Budgets 5. Purchase order preparation 6. Tax returns 7. Sales summary by product line 8. Cash disbursements preparation 9. Annual report preparation 10. Invoice preparation 11. Cost-volume-profit analysis 12. Journal entries
Write out the formula for the total costs of carrying and ordering inventory, and then use the formula to derive the EOQ model.
The first step in preparing the sales budget is to a. prepare a sales forecast. b. review the production budget carefully. c. assess the desired ending inventory of finished goods. d. talk with past customers. e. increase sales beyond the forecast level.
Cost of goods sold is given by: Select one: a. Net Purchases + beginning inventory - ending inventory. b. Net purchases + ending inventory - beginning inventory. c. Beginning inventory + accounts payable - net purchases. d. Beginning inventory - net purchases + ending inventory.
How do you calculate desired ending inventory and estimated beginning inventory?

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