Question

In: Accounting

Which of the following is TRUE regarding the master budget? A. The sales budget is prepared...

Which of the following is TRUE regarding the master budget?

A.

The sales budget is prepared after the production budget.

B.

The budgeting process starts with the cash budget.

C.

The direct materials budget is prepared before the production budget.

D.

Budgeted balance sheet is prepared after the budgeted income statement.

Solutions

Expert Solution


Related Solutions

Which of the following statements is INCORRECT regarding Master Budget?
Which of the following statements is INCORRECT regarding Master Budget? 1 Master budget is one type of operational budget 2. Master budget is focusing specific volume of business activity that is expected. 3 Budgeted balance sheet should be prepared before budgeted income statement. 4. Master budget starts from preparing sales budget.
In preparing an operating budget, the sales budget is prepared first. Which of the following is...
In preparing an operating budget, the sales budget is prepared first. Which of the following is prepared next?
. manufactures ONE PRODUCT. The company prepared a master budget for 2016 which included the following...
. manufactures ONE PRODUCT. The company prepared a master budget for 2016 which included the following pro-forma income statement, which is based on an expected production and sales volume of 15,000 units. Mississippi Corporation Budgeted Income Statement For the Year Ending December 31, 2019 Sales $3,000,000 Cost of Goods Sold: Direct Materials $975,000 Direct Labor $225,000 Machinery Repairs (Variable) $60,000 Depreciation - Plant Equipment $300,000 Utilities ($45,000 is variable) $195,000 Plant Management Salaries $200,000 Cost of Goods Sold $1,955,000 Gross...
REQUIREMENTS: Prepare, in good form, a Master Budget which includes the following: 1)    Sales Budget 2)   ...
REQUIREMENTS: Prepare, in good form, a Master Budget which includes the following: 1)    Sales Budget 2)    Production Budget 3)    Direct Materials Purchases Budget 4)    Direct Labour Cost Budget 5)    Factory Overhead Cost Budget 6)    Cost of Goods Sold Budget 7)    Selling and Administrative Expenses Budget 8)    Budgeted Income Statement 9)    Schedule of Collections from Sales 10)    Schedule of Payments for Manufacturing Costs Budgets should be for the individual three (3) months of the first quarter of 2019. Include a quarterly...
Which of the following statements regarding sales returns and allowances is not true? Group of answer...
Which of the following statements regarding sales returns and allowances is not true? Group of answer choices A reduction in the selling price because of damaged merchandise is included in sales returns and allowances. Sales returns and allowances do not have an impact on gross profit. Sales returns and allowances are closed to the Income Summary account. Sales returns and allowances are rarely disclosed in published financial statements. Sales returns and allowances are recorded in a separate contra-revenue account.
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget for 2016: Guardian Framing Inc. Sales Budget For the Year Ending December 31, 2016 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 18,800 $23 $432,400 Central 4,900 23 112,700 West 4,500 23 103,500 Total 28,200 $648,600 12" × 16" Frame: East 12,500 $24 $300,000 Central 2,900 24 69,600 West 1,900 24 45,600 Total 17,300 $415,200 Total revenue from...
Forecast Sales Volume and Sales Budget Raphael Frame Company prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget Raphael Frame Company prepared the following sales budget for 2016: Raphael Frame Company Sales Budget For the Year Ending December 31, 2016 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 8,500 $16 $136,000 Central 6,200 16 99,200 West 12,600 16 201,600     Total 27,300 $436,800 12" × 16" Frame: East 3,800 $30 $114,000 Central 3,000 30 90,000 West 5,400 30 162,000     Total 12,200 $366,000 Total revenue from...
Preparation of a complete master budget The management of Zigby Manufacturing prepared the following estimated balance...
Preparation of a complete master budget The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 ASSETS Cash.......................................................... $ 40,000 Accounts receivable................................ 342,248 Raw materials inventory.......................... Finished goods inventory........................ 98,500    325,540 Total current assets................................. 806,288 Equipment................................................ $600,000 Less accumulated depreciation.............. 150,000      450,000 Total assets.............................................. $1,256,288 LIABILITIES AND EQUITY Accounts payable.................................... $    200,500 Short-term notes payable.................................... 12,000 Taxes payable.......................................... 0 Total current liabilities............................. 212.500 Long-term note payable..............................
Preparation of a complete master budget The management of Zigby Manufacturing prepared the following estimated balance...
Preparation of a complete master budget The management of Zigby Manufacturing prepared the following estimated balance sheet for March, 2015: ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 ASSETS Cash.......................................................... $ 40,000 Accounts receivable................................ 342,248 Raw materials inventory.......................... Finished goods inventory........................ 98,500    325,540 Total current assets................................. 806,288 Equipment................................................ $600,000 Less accumulated depreciation.............. 150,000      450,000 Total assets.............................................. $1,256,288 LIABILITIES AND EQUITY Accounts payable.................................... $    200,500 Short-term notes payable.................................... 12,000 Taxes payable.......................................... 0 Total current liabilities............................. 212.500 Long-term note payable..............................
The following data is for the month of June for the Sylvie Co. Master Budget: Sales...
The following data is for the month of June for the Sylvie Co. Master Budget: Sales of $8,000,000, variable cost of $4,000,000, and fixed cost of $2,000,000 Actual Results: Sales $9,500,000, variable cost $6,000,000 and fixed cost $2,500,000 Required: Calculate the sales activity and flexible budget variances for the month of June ( 5 column variance analysis ).
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT