Which of the following statements are true? Statement I. In a production budget, if the number of units in finished goods inventory at the of the period is less than the number of units in finished goods inventory at the beginning of t period, then the expected number of units sold is less than the number of units to be produce during the period. Statement II. In the merchandise purchases budget, the required purchases (in units) for a peri can be determined by subtracting the beginning merchandise inventory (in units) from the budgeted sales (in units) and desired ending merchandise inventory (in units). Statement III. When preparing a direct materials budget, beginning inventory for raw materials

Which of the following statements are true? Statement I. In a production budget, if the number of units in finished goods inventory at the of the period is less than the number of units in finished goods inventory at the beginning of t period, then the expected number of units sold is less than the number of units to be produce during the period. Statement II. In the merchandise purchases budget, the required purchases (in units) for a peri can be determined by subtracting the beginning merchandise inventory (in units) from the budgeted sales (in units) and desired ending merchandise inventory (in units). Statement III. When preparing a direct materials budget, beginning inventory for raw materials

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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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.
The budget that adjusts unit sales for beginning and ending inventories of finished goods is the: a. production budget b. purchases budget c. ending inventory of finished goods budget d. cost of goods sold budget
Select the one budget below that is not an operating budget. a. Cost of goods sold budget b. Cash budget c. Production budget d. Overhead budget e. All of these.
Which of the following is not an operating budget? A. sales budget B. production budget C. direct labor budget D. cash budget
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.
Explain the role of a sales forecast in budgeting. What is the difference between a sales forecast and a sales budget?
Evaluate the following statements related to creating budget: I. In a production budget if the number of units in the finished goods inventory at the end of the period is less than the number of units in the finished goods inventory at the beginning of the period then the expected number of units sold is less than the number of units to be produced during the period Ii. in the merchandise purchases budget, the required purchases in units for a period can be determined by subtracting the beginning merchandise Inventory in units from the total of budgeted sales in unit and desired ending merchandise inventory (unit) III. When preparing a direct materials budget the beginning inventory for raw materials should be added to production needs, and the desired ending inventory should be subtracted to determine the amount of raw materials to be purchased Answer: ???
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)
On the production budget, the number of units to be produced is computed as Select one: a. unit sales + desired end inventory + beginning inventory. b. unit sales - desired end inventory - beginning inventory. c. unit sales - desired end inventory + beginning inventory. d. unit sales + desired end inventory - beginning inventory. e. unit sales - cost of goods sold + beginning inventory. PreviousSave AnswersNext
1) The sales budget is based on assumptions about the ___________. a) Number of units to be sold and selling price per unit. b) Timing of cash receipts. c) Contribution margin per unit and the number of units to be sold. d) Costs of the units produced and the total fixed costs. 2) When constructing the production budget, the desired ending inventory for the period is determined based on: a) Next period sales b) Next period production c) Last period production and sales d) Credit period 3)Standard time allowed to complete one unit is 2 hours. A worker during a week (48 hours) completed 20 units and drawn a salary of Rs. 6000. The standard rate per day of 8 hours shift is Rs. 1000. Which one of the following is true? a)Labour efficiency variance is Zero b)Labour rate variance is zero c)Labour cost variance is zero d)None of the above
What is a sales budget? a. A plan of items to be sold b. A plan of how much an item will cost c. A plan for how much money should be made in a given period. d. A plan for tracking an inventory and how much they sell
Which of the following best describes the selling and administrative budget? An estimate of cash expenditures for long-term assets. An estimate of all operating costs other than production costs. A budget that is based on sales projections plus an estimate of desired ending finished goods inventory less beginning finished goods inventory. None of the answer choices is