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Quiz 3, Week 3 Chap 23 Question 1 Davies Nursery plans to sell 160 potted plants during April and 120 units in May. Davies Nursery keeps 15% of the next month’s sales as ending inventory. How many units should Davies Nursery produce during April? A 154 B 166 C 160 D 178 ANS. A Question 2 The financial budgets include the A B Cash budget and the budgeted balance sheet C Budgeted balance sheet and the budgeted income statement D Cash budget and the production budget ANS. B Question 3 Accounting generally has the responsibility for A Setting company goals B Expressing the budget in financial terms C Enforcing the budget D Administration of the budget ANS. B 131192 131180 131215
Question 4 DeVito Exports, Inc. budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2010 to June 30, 2011: June 30, 2011 June 30, 2010 Raw Materials 3,000 kilos 2,000 kilos Three kilos of raw materials are needed to produce each unit of finished product. If DeVito Exports plans to produce 280,000 units during the 2010-2011 fiscal year, how many kilos of materials will the company need to purchase for its production during the year? A 841, B 843, C 840, D 839, ANS. A Question 5 Sandler Company has 6,000 units in beginning finished goods. The sales budget shows expected sales to be 24,000 units. If the production budget shows that 28,000 units are required for production, what was the desired ending finished goods? A 2. B 6, C 10, D 18, ANS. C 131200
Question 9 A budget A Is a substitute for management B Is an aid to management C Can operate or D Is the responsibility of the accounting department ANS. B Question 10 Lester Production is planning to sell 600 boxes of ceramic tile, with production estimated at 580 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Lester has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month? A 25, B 25, C 25, D 26, ANS. C 131178 131215
