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Julia’s Candy Co. reports the following information from its sales account and sales budget:
Expected Sales July $90,000
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Which of the following budgets must be completed before a cash budget can be prepared?
Capital expenditures budget
Merchandise purchases budget
General and administrative expense budget
All of the above
The master budget includes:
A capital expenditures budget
A budgeted income statement
A cash budget
All of the above
Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30 inventory was 1,800 units. Budgeted purchases are:
The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct material cost variance?
$ 3,000 favorable
$ 3,000 unfavorable
Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed overhead spending variance for March?
Kabuki Company’s policy is to have 16% of the next month’s sales as desired ending inventory. Estimated sales are shown in the table below. Given this data, what is Kabuki’s estimated purchases for April?
March April May
Expected Sales Units 9,400 8,900 7,300
The usual starting point for preparing a master budget is forecasting or estimating:
The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:
A department store has budgeted sales of 12,000 men’s suits in September. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the winter season. Beginning inventory for September is expected to be 4,000 suits. What is the dollar amount of purchase of suits? Each suit has a cost of $75.
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