Each unit required two pounds of material. Management believes than an appropriate ending inventory is 20% of next month’s production needs. Calculate the pounds of material to be purchased in April. ▪ 212,000 pounds (105,000x2)=210,000 + Ending Inventory (20% of May production needs: 110,000x0.2)=44,000-Beginning Inventory (20% of April)=42,000 = 212,000 pounds) 30. Pastoria Enterprises has scheduled raw material purchases of $100,000 in January, $130,000 in February, and $150,000 in March. The company pays for 75% of its purchases in the month of purchase and 25% the month after purchases. Calculate the expected cash disbursements for the month of February. ▪ $135,000 (February purchases ($130,000x75%)=$97,500 + January purchases ($100,000x25%)=$25,000) 31.If budgeted sales are 10,000 units, the desired ending inventory of finished goods is 5,000 units, and the beginning inventory of finished goods is 2,000 units, required production is: ▪ 13,000 units (10,000+5,000-2,000=13,000) 32.Sperling Company’s master budget shows expected sales of 10,000 units and expected production of 11,000 units for the month of March. Each unit requires ½ hour of direct labor. The direct labor rate is $15 per hour. Calculate the expected total direct labor cost for the month of March. ▪ $82,500 (Units to be produced x time per unit x rate per hour = 11,000 x ½ x $15 = $82,500)LearnSmart Chapter 8: Budgetary Planning 33.ABC’s Inc’s expect sales for the first 6 month of the year are as following
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Management believes that an appropriate ending inventory is 25% of current period sales. Calculate the number of units to be produced in March ▪ 16,250 (March Sales 16,000 + Ending inventory (25% of March Sales) 4,000 – Beginning Inventory (25% of February Sales) 3,750 = 16,250 units) 34.Davidson Corporation’s master budget shows expected direct labor costs of $90,000 for the month of May. During May, the company’s expected sales equal 12,000 units and expected production is 15,000 units. If each unit requires ½ hour of direct labor, the budgeted direct labor rate is ▪ $12 per hour (15,000 units x ½ hour = 7,500 labor hours. $90,000/7,500 hours = $12 per hours) 35.Edison Corporation’s variable manufacturing overhead rate is %5.00 per direct labor-hour. Budgeted direct labor cost is $20 per hour. Total budgeted fixed overhead is $25,000 per month. Total budgeted direct labor-hours for the month of July is 20,000. Total budgeted manufacturing overhead for July is: ▪ $125,000 (variable overhead (20,000 x $5) = $100,000 + fixed overhead of $25,000 = $125,000) FILL IN THE BLANK 36.A participative budget allows employees throughout the organization to have input into the budget-settings process 37.The first step in preparing the master budget process is the sales budget or forecastLearnSmart Chapter 8: Budgetary Planning 38.Budgeted cash receipts consist of collections on credit sales made to customers in prior periods plus collections on sales made in the current budget period 39.The budgeted balance sheet is prepared using information from the financial budgets 40.The budget that shows the budgeted expenses for areas other than manufacturing is the selling and administrative expenses budget 41.Each component of an master budget is based on or provides input for another component 42.All costs of production other than direct materials and direct labor are shown on the manufacturing overhead budget 43.The number of units that must be produced to satisfy sales needs and to provide for the desired ending inventory is shown on the production budget 44.Operating Budgets include the sales, productions, and purchases budgets 45.The cash budget is a future-oriented version of the statement of cash flows 46.A budget translates company objectives into financial terms 47.Planning Involves developing goals for the budget, whereas controlling involves determining if goals have been followed 48.The three sections of the cash budgets are collections, disbursements, and financing 49.A continuous or rolling budget keeps managers focused at least one year ahead 50.The production budget is based upon the sales budget 51.The raw materials purchases, direct labor, and manufacturing overhead budgets are all based on the production budget 52.The starting point of the planning process is management’s strategic plan or vision for the organization
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Don't forget about the age old question of What tasks are carried out by the nervous system?
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Don't forget about the age old question of How is the Consumer Price Index calculated or computed?