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The budgeted beginning cash balance is $25,000.

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Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.;Reference: 9-19;To attain its desired ending cash balance for July, the company should borrow;Student Response Value Correct Answer Feedback;A. $30,000;B. $0;C. $3,000 100%;D. $57,000;General Feedback: Excess cash available over disbursements = Beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements = $25,000 + $141,000 - $139,000 = $27,000;Borrowing = Desired ending cash balance - Excess cash available over disbursements = $30,000 - $27,000 = $3,000;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 8;Level: Easy;Score: 5/5;2.;The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in February. The variable overhead rate is $3.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All other fixed manufacturing overhead costs represent current cash flows.;Reference: 9-16;The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be;Student Response Value Correct Answer Feedback;A. $24,640;B. $33,760;C. $30,080 100%;D. $5,440;General Feedback;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 6;Level: Easy;Score: 5/5;3.;An organization's budget program should not be used;Student Response Value Correct Answer Feedback;A. to motivate employees.;B. to assign blame to managers that do not meet budgetary goals. 100%;C. to help evaluate managers.;D. to allocate resources to the various parts of an organization.;General Feedback: AACSB: Reflective Thinking;AICPA BB: Critical Thinking, Resource Management;AICPA FN: Reporting;LO: 1;Level: Easy;Score: 5/5;4.;Varughese Inc. is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000.;Reference: 9-22;To attain its desired ending cash balance for March, the company needs to borrow;Student Response Value Correct Answer Feedback;A. $40,000;B. $0;C. $16,000 100%;D. $64,000;General Feedback: Excess cash available over disbursements = Beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements = $33,000 + $182,000 - $191,000 = $24,000;Borrowing = Desired ending cash balance - Excess cash available over disbursements = $40,000 - $24,000 = $16,000;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 8;Level: Easy;Score: 5/5;5.;Which of the following statements is NOT correct concerning the Cash Budget?;Student Response Value Correct Answer Feedback;A. It is not necessary to prepare any other budgets before preparing the Cash Budget. 100%;B. The Cash Budget should be prepared before the Budgeted Income Statement.;C. The Cash Budget should be prepared before the Budgeted Balance Sheet.;D. The Cash Budget builds on earlier budgets and schedules as well as additional data.;General Feedback: AACSB: Reflective Thinking;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 8;Level: Easy;Score: 5/5;6.;On October 1, The Gala Manufacturing Company has 300 units of Product XYZ on hand. The company plans to sell 1,200 units of Product XYZ during October, and plans to have 500 units on hand October 31. How many units of Product XYZ must be produced during October?;Student Response Value Correct Answer Feedback;A. 1,400 100%;B. 1,500;C. 1,000;D. 2,000;General Feedback: Units produced = Ending inventory + Units sold - Beginning inventory;= 500 + 1,200 - 300 = 1,400;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 3;Level: Easy;Score: 5/5;7.;Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000. The desired ending cash balance is $30,000.;Reference: 9-20;To attain its desired ending cash balance for January, the company should borrow;Student Response Value Correct Answer Feedback;A. $17,000 100%;B. $0;C. $30,000;D. $43,000;General Feedback: Excess cash available over disbursements = Beginning cash balance + Budgeted cash receipts - Budgeted cash disbursements = $18,000 + $183,000 - $188,000 = $13,000;Borrowing = Desired ending cash balance - Excess cash available over disbursements = $30,000 - $13,000 = $17,000;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 8;Level: Easy;Score: 5/5;8.;Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.;Reference: 9-6;If the company plans to sell 270,000 units during the year, the number of units it would have to manufacture during the year would be;Student Response Value Correct Answer Feedback;A. 300,000 units;B. 270,000 units;C. 260,000 units;D. 280,000 units 100%;General Feedback: Units produced = Ending inventory + Units sold - Beginning inventory;= 30,000 + 270,000 - 20,000 = 280,000;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 3;Level: Easy;Score: 5/5;9.;The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 1,600 direct labor-hours will be required in February. The variable overhead rate is $3.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,320 per month, which includes depreciation of $3,680. All other fixed manufacturing overhead costs represent current cash flows.;Reference: 9-16;The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be;Student Response Value Correct Answer Feedback;A. $3.40;B. $21.10 100%;C. $17.70;D. $18.80;General Feedback: Predetermined factory overhead rate = Variable overhead rate per direct labor hour + Fixed factory overhead rate per hour = $3.40 + ($28,320 ? 1,600);= $3.40 + $17.70 = $21.10;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 6;Level: Easy;Score: 5/5;10.;The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,300 direct labor-hours will be required in January. The variable overhead rate is $1.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $28,060 per month, which includes depreciation of $4,600. All other fixed manufacturing overhead costs represent current cash flows.;Reference: 9-15;The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for January should be;Student Response Value Correct Answer Feedback;A. $1.00;B. $12.20;C. $11.20;D. $13.20 100%;General Feedback: Predetermined factory overhead rate = Variable overhead rate per direct labor hour + Fixed factory overhead rate per hour;= $1 + ($28,060 ? 2,300) = $1 + $12.20 = $13.20;AACSB: Analytic;AICPA BB: Critical Thinking;AICPA FN: Reporting;LO: 6;Level: Easy;Score: 5/5

 

Paper#26554 | Written in 18-Jul-2015

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