Part 1

On the production budget, the number of units to be produced is computed as

A.

unit sales - desired end inventory - beginning inventory.

B.

unit sales + desired end inventory- beginning inventory.

C.

unit sales - desired end inventory + beginning inventory.

D.

unit sales + desired end inventory + beginning inventory.

Part 2

On the direct materials budget, the total quantity of direct materials to purchase is computed as

A.

quantity needed for production + desired end inventory of DM - beginning inventory of DM.

B.

units to be produced + desired end inventory of DM - beginning inventory of DM.

C.

units to be produced - desired end inventory of DM + beginning inventory of DM.

D.

quantity needed for production - desired end inventory of DM + beginning inventory DM.

Part 3

Loyal Pet Company expects to sell 4,000 beefy dog treats in January and 6,000 in February for

$5.00 each. What will be the total sales revenue reflected in the sales budget for those months?

A.

January $1,200 ; February $800

B.

January $20,000 ; February $30,000

C.

January $30,000 ; February $20,000

D.

January $800 ; February $1,200