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ID: 2344147 • Letter: P

Question

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Question: The direct materials budget shows:

Units to be produced 3,000

Total pounds needed for production 12,000

Total materials required 13,200


What are the direct materials per unit?

A .44 pounds

B 4.0 pounds

C 4.4 pounds

D Cannot be determined from the data provided

Question: A budget period should be

A Monthly

B For a year or more

C Long term

D Long enough to provide an obtainable goal under normal business conditions

Question: Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Production in units for the third quarter should be budgeted at

A 147,000

B 138,000

C 183,000

D 144,000

Question: The direct materials budget details

1. The quantity of direct materials to be purchased.

2. The cost of direct materials to be purchased.

A 1

B 2

C Both 1 and 2

D Neither 1 nor 2

Question: The production budget shows that expected unit sales are 40,000. The total required units are 45,000. What are the required production units?

A 5,000

B 7,500

C 10,000

D Cannot be determined from the data provided

Question: Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Cash collections for the third quarter are budgeted at

A $2,034,000

B $2,952,000

C $3,546,000

D $4,104,000

Question: Lester Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Lester has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory.

What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

A 25,520

B 25,120

C 25,920

D 26,800

Question: Why are budgets useful in the planning process?

A They provide management with information about the company's past performance

B They help communicate goals and provide a basis for evaluation

C They guarantee the company will be profitable if it meets its objectives

D They enable the budget committee to earn their paycheck

Question: The following information is taken from the production budget for the first quarter:

Beginning inventory in units 600

Sales budgeted for the quarter 228,000

Production capacity in units 236,200


How many finished goods units should be produced during the quarter if the company desires 1,600 units available to start the next quarter?

A 229,000

B 227,000

C 237,000

D 229,600

Question: Giles Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?

A 579,600

B 590,400

C 601,200

D 648,000

Explanation / Answer

What are the direct materials per unit?

A .44 pounds

B 4.0 pounds

(12000 / 3000 ) = 4.0 pound per unit

C 4.4 pounds

D Cannot be determined from the data provided

Question: A budget period should be

A Monthly

B For a year or more

C Long term

D Long enough to provide an obtainable goal under normal business conditions

Question: Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Production in units for the third quarter should be budgeted at

A 147,000

For the third period the sales are to be 144,000 and the opening calucated as the 2nd periods ending is 33000. The ending for 3rd period is 36000 so the production is 147,000

B 138,000

C 183,000

D 144,000

Question: The direct materials budget details

1. The quantity of direct materials to be purchased.

2. The cost of direct materials to be purchased.

A 1

B 2

C Both 1 and 2

D Neither 1 nor 2

Question: The production budget shows that expected unit sales are 40,000. The total required units are 45,000. What are the required production units?

A 5,000

B 7,500

C 10,000

D Cannot be determined from the data provided

Question: Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Cash collections for the third quarter are budgeted at

A $2,034,000

B $2,952,000

C $3,546,000

Calcuation for the second quarter remaining is : 132000 * 25 * 0.6* 0.3

+

Calucation for third quarter are: 144000* 25 * 0.4 + 144000 * 25 * 0.6 * 0.7 =

Sum will be C

D $4,104,000

Question: Lester Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Lester has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory.

What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

A 25,520

B 25,120

C 25,920

D 26,800

600 * 44 - Opening inventory + ending inventory

Question: Why are budgets useful in the planning process?

A They provide management with information about the company's past performance

B They help communicate goals and provide a basis for evaluation

C They guarantee the company will be profitable if it meets its objectives

D They enable the budget committee to earn their paycheck

Question: The following information is taken from the production budget for the first quarter:

Beginning inventory in units 600

Sales budgeted for the quarter 228,000

Production capacity in units 236,200


How many finished goods units should be produced during the quarter if the company desires 1,600 units available to start the next quarter?

A 229,000

B 227,000

C 237,000   

Sales + Ending Inventory = finished good level

D 229,600

Question: Giles Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?

A 579,600

B 590,400

C 601,200

16,700 * 3 * 12 = C

D 648,000