Question 1

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

Accepted Answer

The answer of A ________ is a continuously revised budget...

Question 2

Use the following information to prepare the June cash budget for Springer Company. It should show expected cash receipts and cash payments for the month and the cash balance expected on June 30.
a. Beginning cash balance on June 1 is $52,000.
b. Cash receipts from sales are expected to be $1,625,000.
c. Cash payments for direct materials and direct labor are expected to be $246,500 and $573,100, respectively.
d. Budgeted cash payments for variable overhead is $340,000.
e. Budgeted depreciation, the only fixed overhead estimated for June: $24,000.
f. Cash selling and administrative expenses budgeted for June are $282,000.
g. Bank loan interest due in June: $8,000.
i. Loan payment of $50,000 should be made if the preliminary cash balance is greater than $200,000.

Accepted Answer

The answer of Use the following information to prepare the...

Question 3

The production budget for Greski Company shows the following production volume for the months of July-September. Each unit produced requires 2.5 hours of direct labor. The direct labor rate is predicted to be $16 per hour in all months. Prepare a direct labor budget for Greski Company for July-September.

Accepted Answer

The answer of The production budget for Greski Company shows...

Question 4

________ is a budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities.

Accepted Answer

The answer of ________ is a budget system based on...

Question 5

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

Accepted Answer

The answer of ________ is a budgeting guideline that recognizes...

Question 6

The ________ , prepared by manufacturing firms, shows the number of units to be produced in a period based on the unit sales projected in the sales budget, along with inventory considerations.

Accepted Answer

The answer of The ________ , prepared by manufacturing firms,...

Question 7

Use the following information to prepare a budgeted balance sheet for Grover Company for the month of June.
a. The budgeted net income for the month of June is $236,000.
b. The beginning cash balance is $62,000; total budgeted cash receipts are $1,660,000; total budgeted cash payments are $1,580,000.
c. Budgeted sales for June are $1,700,000. Collections are 40% in the month of sale and 60% in the month following.
d. The projected inventory balance is 10% of the following month's sales. Sales for July are projected to be $1,750,000.
e. Budgeted purchases for June are $900,000 to be paid 80% in the month of purchase and 20% in the month following.
f. The equipment account balance is $1,400,000 on May 31. No equipment purchases or disposals will be made during June. On May 31, the accumulated depreciation is $276,000. Depreciation expense for June is estimated to be $24,000.
g. An outstanding loan balance of $800,000 is expected at the end of June.
h. Accrued income taxes payable for June 30 are expected to be $71,000. Salaries payable for June 30 are expected to be $50,000.
i. The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31. No additional common stock will be issued and no dividends will be paid during June.

Accepted Answer

The answer of Use the following information to prepare a...

Question 8

Snap, Inc., provides the following data for the next three months:
  Desired ending inventory:
Raw Materials = 30% of next month's production needs
Pounds of raw material required for each finished Unit = 5 lbs.
Calculate the amount of purchases of raw materials in pounds for April and May.

Accepted Answer

The answer of Snap, Inc., provides the following data for...

Question 9

Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.
a. Beginning cash balance on June 1 is $52,000.
b. Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
c. Cost of goods sold is 53% of sales.
d. Budgeted cash payments for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
e. Budgeted depreciation expense for June: $24,000.
f. Other cash expenses budgeted for June: $282,000.
g. Accrued income taxes due in June: $48,000.
h. Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.
i. The income tax rate applicable to the company is 30%.

Accepted Answer

The answer of Use the following information to prepare a...

Question 10

The ________ shows expected cash inflows and outflows during the budget period.

Accepted Answer

The answer of The ________ shows expected cash inflows and...

Question 11

There are at least five benefits from budgeting. Identify two of these benefits:
(1) ________
(2) ________

Accepted Answer

The answer of There are at least five benefits from...

Question 12

The master budget process usually begins with the preparation of the ________ and usually finishes with the preparation of the ________, the ________, and the ________.

Accepted Answer

The answer of The master budget process usually begins with...

Question 13

Addams, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:
  Finished goods inventory on March 31: 120 units
Raw materials inventory on March 31: 450 pounds
Desired ending inventory each month:
Finished goods: 30% of next month's sales
Raw materials: 25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lbs.
How many pounds of raw materials should be purchased in April?

Accepted Answer

The answer of Addams, Inc., is preparing its master budget...

Question 14

Match between columns
                        Premises: A formal statement of future plans, usually expressed in monetary terms.
A plan showing the number of units to be produced each period, based on the units projected in the sales budget, along with inventory considerations.
A plan that shows the expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.
The practice of revising budgets as time passes.
A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period.
A plan that lists the types and amounts of selling expenses expected during the budget period.
A plan showing the expected sales units and dollars from the sales; the starting point in the budgeting process.
A plan that lists dollar amounts estimated to be received from disposing of plant assets and spent on purchasing additional plant assets to carry out the budgeted business activities.
Additional monthly or quarterly budgets to replace the ones that have lapsed as each budget period goes by.
A plan that shows expected activities and their levels for the budget period used to estimate resources required to perform the activities.

Accepted Answer

The Answer of Cash budget and Budgeted balance sheet and is...

Question 15

Match between columns
                        Premises: A plan that shows the expected sales units and the dollars from these sales.
A managerial accounting report that shows predicted amounts of the company's assets, liabilities, and balances as of the end of the budget period.
A plan that shows the expected cash inflows and cash outflows during the budget period.
A plan that shows the units and dollars of merchandise to be purchased during the budget period.
A plan that plans the predicted operating expenses not included in the selling expenses or manufacturing budgets.
A formal, comprehensive plan for a company's future that includes several individual budgets that are linked with each other to form a coordinated plan.
A managerial accounting report that shows predicted amounts of sales and expenses for the budget period.
A quantity of inventory that provides protection against lost sales caused by unfulfilled demand from customers or delays in shipments from suppliers.
A formal statement of a company's future plans, usually expressed in monetary terms.

Accepted Answer

The Answer of Cash budget and Sales budget and General is...

Quiz 7: Master Budgets and Performance Planning

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

________ is a budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities.

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

The ________ , prepared by manufacturing firms, shows the number of units to be produced in a period based on the unit sales projected in the sales budget, along with inventory considerations.

Snap, Inc., provides the following data for the next three months: Desired ending inventory: Raw Materials = 30% of next month's production needs Pounds of raw material required for each finished Unit = 5 lbs. Calculate the amount of purchases of raw materials in pounds for April and May.

The ________ shows expected cash inflows and outflows during the budget period.

There are at least five benefits from budgeting. Identify two of these benefits: (1) (2)

The master budget process usually begins with the preparation of the and usually finishes with the preparation of the , the , and the .

Presented below are terms or phrases preceded by letters (a) through (j) Match the correct definitions with the terms

Match the definitions 1 through 9 with the correct term or phrase (a) through (i).

Quiz 7: Master Budgets and Performance Planning

A ________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.

________ is a budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities.

________ is a budgeting guideline that recognizes employees affected by a budget should be involved in preparing it.

The ________ , prepared by manufacturing firms, shows the number of units to be produced in a period based on the unit sales projected in the sales budget, along with inventory considerations.

Snap, Inc., provides the following data for the next three months: Desired ending inventory: Raw Materials = 30% of next month's production needs Pounds of raw material required for each finished Unit = 5 lbs. Calculate the amount of purchases of raw materials in pounds for April and May.

The ________ shows expected cash inflows and outflows during the budget period.

There are at least five benefits from budgeting. Identify two of these benefits: (1) ________ (2) ________

The master budget process usually begins with the preparation of the ________ and usually finishes with the preparation of the ________, the ________, and the ________.

Presented below are terms or phrases preceded by letters (a) through (j) Match the correct definitions with the terms

Match the definitions 1 through 9 with the correct term or phrase (a) through (i).

There are at least five benefits from budgeting. Identify two of these benefits: (1) (2)

The master budget process usually begins with the preparation of the and usually finishes with the preparation of the , the , and the .