The sales budget for Your Company projected quarterly sales for the next years as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 10 percent of the next quarter's sales. Calculate budgeted production for the third quarter of the next year. Use the following to answer the next two questions: A cash budget by quarters for the Your Company is given below (note that some data are missing). Missing data amounts have been keyed with either question marks or lower case letters (a, b, c, etc); these lower case letters will be referred to in the question that follow. (It may be necessary to calculate a value for items where a question mark appears.) The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands. What w ere the collections from customers during the First quarter (item A)? What, if any, borrowing was required during the first quarter to meet the minimum cash balance (item B)? There are various budgets within the master budget One of these budgets is the production budget. Which of the following BEST describes the production budget? Budgeted sales in Your Company over the next four months ore given below: Budgeted sales September $100,000 October $160,000 November $180,000 December $120,000 Twenty-five percent of the company's sales are for cash and 75% are on account Collections for sales on account follow a stable pattern as follow s: 50% of a month's sales are collected in the month of sale. 30% are collected in the month following sale, and 15% are collected in the second month following sale The remainder are uncollectible. What should the cash collections for December be? True/ False (Circle one) In developing a direct material price standard, the expected freight cost on the materials should be included. True/ False (Circle one) In a flexible budget, when the activity declines, the v arable costs per unit also declines. The sales budget for Your Company projected quarterly sales for the next years as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 10 percent of the next quarter's sales. Calculate budgeted production for the third quarter of the next year. Use the following to answer the next two questions: A cash budget by quarters for the Your Company is given below (note that some data are missing). Missing data amounts have been keyed with either question marks or lower case letters (a, b, c, etc); these lower case letters will be referred to in the question that follow. (It may be necessary to calculate a value for items where a question mark appears.) The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands. What w ere the collections from customers during the First quarter (item A)? What, if any, borrowing was required during the first quarter to meet the minimum cash balance (item B)? There are various budgets within the master budget One of these budgets is the production budget. Which of the following BEST describes the production budget? Budgeted sales in Your Company over the next four months ore given below: Budgeted sales September $100,000 October $160,000 November $180,000 December $120,000 Twenty-five percent of the company's sales are for cash and 75% are on account Collections for sales on account follow a stable pattern as follow s: 50% of a month's sales are collected in the month of sale. 30% are collected in the month following sale, and 15% are collected in the second month following sale The remainder are uncollectible. What should the cash collections for December be? True/ False (Circle one) In developing a direct material price standard, the expected freight cost on the materials should be included. True/ False (Circle one) In a flexible budget, when the activity declines, the v arable costs per unit also declines
