# Homework Es

Topics: Budget, Pro forma, Budgets Pages: 2 (272 words) Published: November 4, 2012
1. (TCO 7) The financial budgets include the: (Points : 4)
cash budget and the selling and administrative expense budget. cash budget and the pro forma balance sheet.
pro forma balance sheet and the pro forma income statement. cash budget and the production budget.

2. (TCO 7) The starting point in preparing a master budget is the preparation of the: (Points : 4) production budget.
sales budget.
personnel budget.

3. (TCO 7) The production budget shows planned sales of 43,000. Beginning inventory is 6,400. Units to be produced are 44,400. What is the desired ending inventory? (Points : 4) 5,000
6,400
7,800
12,800

44,400 – 43,000 = 1400 + 6400 = 7800

4. (TCO 7) The direct materials budget shows:
Units to be produced3,000
Production needs12,000
Total needs13,200

What are the direct materials per unit? (Points : 4)
0.44 pounds
4.0 pounds
4.4 pounds
Cannot be determined from the data provided.

12000/3000 = 4 pounds

5. (TCO 7) JKL Company expects the following sales and collection pattern for the indicated four months of the year: MonthCash SalesCredit SalesTotal Sales
June\$42,000 \$82,000 \$124,000
July\$36,000 \$78,000 \$114,000
August\$41,000 \$80,000 \$121,000
September\$38,000 \$83,000 \$121,000

•8% of credit sales are collected in the same month
•72% of sales are collected in the following month
•15% of sales are collected in the second following month What are the projected cash collections for the month of September? (Points : 4) \$75,940
\$113,940
\$118,090
\$122,090