Ch. 9 acc 406

Question 1

Units to be produced =

Answer 1

expected unit sales + units in END inventory – units in BEG inventory

Question 2

DM purchased =

Answer 2

DM needed + desired DM in END inventory – DM in BEG inventory

Question 3

Sales Budget

Answer 3

Units x Unit selling Price

Question 4

Production Budget (Units to be Produced) =

Answer 4

Sales in Units + Desired Ending Inventory = Total Needs - Beginning Inventory

Question 5

Direct Materials Purchase Budget (Total Purchase Cost)

Answer 5

Units to be produced x DM per Unit = Production Needs + Desired Ending Inventory = Total Needs - Beginning Inventory = Materials To Be Purchased x Cost per Direct Materials Unit

Question 6

Direct Labour Budget (Total Direct Labour Cost) =

Answer 6

Units to be produced x Labour(hours per unit) = Total Hours Needed x Average Cost Per Hour

Question 7

Manufacturing Overhead Budget =

Answer 7

Budgeted direct labour hours x Variable overhead rate = Budgeted variable overhead + Budgeted fixed overhead*

Question 8

Merchandise Budget

Answer 8

Sales in Units + Desired Ending Inventory = Total Needs - Beginning Inventory

Question 9

Preparing a Selling and Administrative Expenses Budget =

Answer 9

Planned sales in units x Variable Selling and Admin per Unit = Total Variable Expenses.

Salaries + Utilities + Ads + Depreciation = Total Fixed Expenses

Total Selling and Admin Expenses = Total Fixed Expenses + Total Variable Expenses

Question 10

Cash Budget =