1. If there were 40000 pounds of direct materials on hand on January 1, 120000 pounds are desired for inventory at January 31, and 600000 pounds are required for January production, how many pounds of direct materials should be purchased in January?

480000 pounds

680000 pounds

520000 pounds

720000 pounds

2. The production budget shows expected unit sales of 45000. Beginning finished goods units are 5000. Required production units are 44000. What is the desired number of units in ending finished goods?

6000

5000

7000

4000

3. In the production budget, total required production units is equal to the expected sales units plus

desired ending finished goods units plus beginning finished goods units.

desired ending finished goods units.

desired ending finished goods units minus beginning finished goods units.

beginning finished goods units.

4. The production budget shows that expected sales units are 49500. The total required units are 57000. What are the required production units?

15000

Cannot be determined from the data provided

7500

11250

5. A master budget consists of

interrelated financial budgets and operating budgets.

all the accounting journals and ledgers used by a company.

an interrelated long-term plan and operating budgets.

financial budgets and a long-term plan.