apter 20 Test Accounting 48 V1 The total estimated sales for the coming year is 600,000 units The estimated nventory at the beginning of the year is 40,000 units, and the desired inventory at the end of the year is 70,000 units. The total production indicated in the production budget is a) 530,000 b) 580,000 e) $70,000 d) 600.000 e) 630,000 2 Which of the following budgets is not considered an operating budget? a) b) c) sales budget d) cash budget e) administrative expense budget production budget direct materials purchases budget 3. Which of the following is similar to a rolling budget? a) Continuous budgeting b) Flexible budgeting c) Percent-based budgeting d) Zero-based budgeting e) Materials budget 4. A budget that uses the production budget as a starting point is: a) sales budget b) production budget c) master budget d) capital expenditures budget e) direct materials purchases budget 5. Flowers Company expects credit sales of $700,000 in Feb., $650,000 in March and $800,000 Dixon historically collects 20% of its sales in the month of sale and 70% in the month in April after the sale, and 10% in the 2nd month after the sale How much cash does Dixon expect to collect in April? a) $1,500,000 b) $685,000 c) $1,600,000 d) $1,620,000 None of the above. e) For Flowers Company in question 5 above, what is the accounts receivable balance May 1? b) $1,085,000 6. a) $705,000 c) $1,165,000 d) e) $1,175,000 None of the above