Choose correct answer and Please show/explain answer 1. Bank loan officers would
ID: 2388551 • Letter: C
Question
Choose correct answer and Please show/explain answer1. Bank loan officers would find which of the following budgets to be most important in determining whether or not to give a company a loan?
a. sales budget
b. production budget
c. budgeted income statement
d. budgeted balance sheet
e. cash budget
2. Aces Company budgeted the following sales in units:
January 30,000
February 20,000
March 40,000
Each unit requires 3 pounds of raw material. Diamond’s policy is to have 20% of the following month’s production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.
Raw materials purchases budgeted for February in pounds equal:
a. 72,000.
b. 32,000.
c. 91,000.
d. 30,000.
e. 54,000.
3. Diamond Company budgeted the following production in units for the first quarter of the year:
January 30,000
February 20,000
March 40,000
Each unit requires 3 pounds of raw material. Diamond’s policy is to have 20% of the following month’s production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.
Raw materials purchases budgeted for February in pounds equal:
a. 72,000.
b. 32,000.
c. 91,000.
d. 30,000.
e. 54,000.
4. Desired ending inventory for January in pounds equals:
a. 12,000
b. 6,000
c. 3,000
d. 4,000
e. 11,000
5. Belant Company budgeted 200,000 units for June, 210,000 for July and 300,000 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August?
a. 50,000
b. 5,000
c. 75,000
d. 52,500
e. 300,000
Explanation / Answer
1. Bank loan officers would find which of the following budgets to be most important in determining whether or not to give a company a loan?
a. sales budget
b. production budget
c. budgeted income statement
d. budgeted balance sheet
e. cash budget
2. Aces Company budgeted the following sales in units:
January 30,000
February 20,000
March 40,000
Each unit requires 3 pounds of raw material. Diamond’s policy is to have 20% of the following month’s production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.
Raw materials purchases budgeted for February in pounds equal:
a. 72,000.
b. 32,000.
c. 91,000.
d. 30,000.
e. 54,000.
3. Diamond Company budgeted the following production in units for the first quarter of the year:
January 30,000
February 20,000
March 40,000
Each unit requires 3 pounds of raw material. Diamond’s policy is to have 20% of the following month’s production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds.
Raw materials purchases budgeted for February in pounds equal:
a. 72,000.
b. 32,000.
c. 91,000.
d. 30,000.
e. 54,000.
4. Desired ending inventory for January in pounds equals:
a. 12,000
b. 6,000
c. 3,000
d. 4,000
e. 11,000
5. Belant Company budgeted 200,000 units for June, 210,000 for July and 300,000 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August?
a. 50,000
b. 5,000
c. 75,000
d. 52,500
e. 300,000