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2. If the company projects a consistant sales growth of 5% year over year what would be the projected sales in year 5 given Current

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2. If the company projects a consistant sales growth of 5% year over year what would be the projected sales in year 5 given Current years sales (Year 1) to be $150,000

3. This is a Direct Materials Budget below. Your company like to have 20% of next months sales in inventory at the begging of the month. Given the information below determine the amount of units of inventory that will need to be purchased in the period and the amount of beg inv. 5. Below listed are the budgeted figures for the period along with he actual results. Please to the right of each row show the amount of the variance and determine if it is favorable (F) or unfavorable (U

1. When creating a master budget the process typically begins with which of the following budget types Sales Production Direct labor Cash 2. If the company projects a consistant sales growth of 5% year over year what would be the projected sales in year 5 given Current years sales (Year 1) to be $150.000 3. This is a Direct Materials Budget below. Your company like to have 20% of next months sales in inventory at the begging of the month. Given the information below determine the amount of units of inventory that will need to be purchased in the period and the amount of beginv. lan Feb Mar April May Beg Inv. 55 Purchases Sales -65 -100 -220 -180 -340 End Inv 20 44 36 68 (Hint): Ending Inventory is the same as beginning for next month. End invis equal to the following periods sales x 20% 4. Explain in 3-4 sentences the difference between a fixed and flexible budget 5. Below listed are the budgeted figures for the period along with he actual results. Please to the right of each row show the amount of the variance and determine if it is favorable (F) or unfavorable (u). Budget Actual Variance Sales (in units) 12,000 14,000 (Hint): Think of favorable and unfavorable as (good or bad). If your electric bill is normal $55 but this month it was $75 that is bad (Unfavorable). If your paycheck was supposed to be $700 but instead you received $850 that is good (favorable). This is an area where students struggle and overthink. It is as simple as these examples. You want expenses to be lower than you budget and sales to be higher than the budget. Sales (in dollars) 250,000 220,000 Cost of Goods Sold Direct Materials 12,000 14,000 Direct Labor 13,000 15,500 Overhead Factory Supplies 2,200 2,300 Utilities 15,000 14,700 Depreciation - Machinery 12,300 12,300 Supervisor Salary 14,650 15,000

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