charter oak acc102 week 10 test part 1

1. The benefits of budgeting include all of the following except

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2. When budgeted amounts are set at reasonable and achievable levels:

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3. What is the starting point in the preparation of the master budget?

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4. Which of the following is considered an operating budget estimate?

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5. The production schedule in units:

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6. Preparation of a budgeted income statement does not require:

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7. In a cash budget, the budgeted level of cash receipts depends on all of the following except:

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8. A flexible budget is one that:

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Use the following to answer questions 9-10:

The following information is from the manufacturing budget and budgeted financial statements of Taylor Corp.:

9. Refer to the information above. For the year, budgeted purchases of direct materials amounted to:

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10. Refer to the information above. For the year, budgeted cash payments to suppliers amounted to:

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11. Goldcoast Corporation has budgeted a total of $356,800 in costs and expenses for the upcoming quarter. Of this amount, $40,000 represents depreciation expense and $6,800 represents the expiration of prepayments. Goldcoast's current payables balance is $260,000 at the beginning of the quarter. Budgeted payments on current payables for the quarter amount to $365,000. The company's estimated current payables balance at the end of the quarter is:

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Use the following to answer questions 12-14:

On October 1 of the current year, Winston Corporation prepared a cash budget for October, November, and December. All of Winston's sales are made on account. The following information was used in preparing estimated cash collections:

Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.

12. Refer to the information above. Budgeted collections from customers in October total:

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13. Refer to the information above. Budgeted collections from customers in November total:

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14. Refer to the information above. Budgeted collections from customers in December total:

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Use the following to answer questions 15-17:

Monroe Promotions, Inc. sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:

Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income.

If the concert season is slow due to poor weather, Monroe/>/> estimates that sales could fall to as low as 60,000 T-shirts.

15. Refer to the information above. In a flexible budget for sales of 60,000 T-shirts, how much would Monroe/>/> budget for operating expenses?

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16. Refer to the information above. What unit cost did Monroe/>/> use in budgeting the cost of goods sold for the year?

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17. Refer to the information above. Assume Monroe/>/> actually achieves the 60,000 unit sales level, and that net income actually earned at this level was $70,000. A performance report would indicate that net income was:

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