Question
Anticipated unit sales are January, 5,000; February, 4,000; and March 8,000. Finished goods are consistently maintained at 80% of the following month's sales. How many
Anticipated unit sales are January, 5,000; February, 4,000; and March 8,000. Finished goods are consistently maintained at 80% of the following month's sales. How many units must Lancaster produce in January?
2, If budgeted sales increase from $100,000 to $110,000, budgeted production:
A. should be increased by $10,000.
B. should be increased by 9.1%.
C. should be increased by 10%.
D. could possibly decrease.
E. None of these.
3. Which of the following budgets is not specifically dependent on the short-run production budget?
A. Direct materials budget.
B. Direct labor budget.
C. Factory overhead budget.
D. Capital expenditures budget.
E. None of these.
4. A continuous budget typically:
A. drops completed months and adds future months as time passes.
B. is known as pro forma budgeting.
C. is a top-down approach with management constantly issuing budget edicts.
D. eliminates the need for periodic bank reconciliations.
E. None of these.
5. The bottom-up budget development approach the budget:
A. is imposed on lower-level personnel who rarely are involved in budget construction.
B. centers on lower-level employee participation.
C. process begins with the issuance of general guidelines by top management.
D. Both B and C.
E. None of these.
6. A continuous budget typically:
A. drops completed months and adds future months as time passes.
B. is known as pro forma budgeting.
C. is a top-down approach with management constantly issuing budget edicts.
D. eliminates the need for periodic bank reconciliations.
E. None of these.
7. A company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 10,000 units were started, and 5,000 units completed. Ending work in process is 60% complete. The cost per equivalent unit of material is:
8. Using weighted-average, total cost to account for in a process is $100,000, evenly divided between materials and conversion. Conversion consists of 75,000 equivalent units, divided one-fourth to work in process, and three-fourths to completed units, then:
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