The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; and cost of goods sold, $2,560,000. The budgeted costs of goods manufactured is

Group of answer choices

$2,435,000

$2,560,000

$3,965,000

$1,405,000

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Question 21 pts

Detailed supplemental schedules based on department responsibility are often prepared for major items in the operating expenses budget.

Group of answer choices

True

False

The master budget of a small manufacturer would normally include all necessary component budgets except the budgeted balance sheet.

Group of answer choices

True

False

A budget can be an effective means of communicating managements plans to the owners of a business.

Group of answer choices

True

False

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Question 51 pts

Below is budgeted production and sales information for Flushing Company for the month of December:

	Product XXX	Product ZZZ
Estimated beginning inventory	32,000 units	20,000 units
Desired ending inventory	34,000 units	17,000 units
Region I, anticipated sales	320,000 units	260,000 units
Region II, anticipated sales	180,000 units	140,000 units

The unit selling price for product XXX is $5 and for product ZZZ is $15.

Budgeted production for product ZZZ during the month is

Group of answer choices

417,000 units

380,000 units

403,000 units

397,000 units

The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

Group of answer choices

control center

responsibility center

managerial department

budgetary area

Osprey Cycles, Inc. projected sales of 75,000 bicycles for the year. The estimated January 1 inventory is 5,000 units, and the desired December 31 inventory is 8,000 units. What is the budgeted production (in units) for the year?

The financial budgets of a business include the cash budget, the budgeted income statement, and the budgeted balance sheet.

Group of answer choices

True

False

Gilberts expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Payments of manufacturing costs are as follows: 25% in the month of production and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending balance on September 30 would be

Group of answer choices

$61,500

$72,300

$75,000

$71,500

Past performance is the best overall basis for evaluating current performance and assessing the need for corrective action.

Group of answer choices

True

False