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

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

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 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
Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
Which of the operating budgets is prepared first? A. production budget B. sales budget C. cash received budget D. cash payments budget
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 & sales D. Credit period
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)
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
The units required in production each period are computed by which of the following methods? Select one: a. adding beginning inventory, budgeted sales, and desired ending inventory b. adding beginning inventory to budgeted sales and subtracting desired ending inventory c. adding budgeted sales to the beginning inventory and subtracting the desired ending inventory d. adding budgeted sales to the desired ending inventory and subtracting beginning inventory
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
The sales budget is based on assumptions about the ______? A. No. 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 unit produced and the total fixed costs
Which of the following appears on the budgeted balance sheet? * A. estimated sales B. estimated cost of goods sold C. estimated fixed selling expense D. estimated ending accounts receivable
When preparing a production budget, the required production equals: 1. budgeted sales+beginning inventory+desired ending inventory 2. budgetd sales-beginning inventory+desired ending inventory 3.budgeted sales-beginning inventory+desired ending inventory 4. budgeted sales+ beginning inventory-desired ending inventory
a) Analyze the sales budget (in unit and value). b) Analyze the production budget of the Bobo Co. c) Construct a material usage and purchases budget of the Bobo Co.