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3 years ago

Which of the following listings correctly describes the order in which the four types of budgets must be prepared?

Business

1 answer:

professor190 [17]3 years ago

3 0

Answer:

b. Sales, production, direct materials purchases, cash disbursements.

Explanation:

First, you calculate your sales.

Then, the amount produced to fulfill your sales and desired inventory stocks

Based on your production, you can calculate the direct materials purchases

Lastly, with the combination of raw materials purchases, along with other information, you generate the cash disbursements budget

a.- you need to know the production to know how much direct materials do you need. INCORRECT

c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT

d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT

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Transactions processing systems monitor, collect, store, and process data generated from all business events. Select one: True F

Radda [10]

Answer:

TRUE

Explanation:

For example: consider a video game store where a customer comes in to buy a product then pay for it at the checkout counter. The staff goes to take the similar product from the store room and replaces it on the shelve. When the stock runs low, new products are ordered.

All the processes above involve the collection, storing and processing of the the product and the system that monitors those process is known as Transaction Processing System.

4 0

4 years ago

Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per h

Ganezh [65]

Answer:

Total direct labor costs= $295,680

Explanation:

Giving the following information:

Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per hour.

Production= 22,000 Pods.

First, we need to calculate the total direct labor hours required:

Total direct labor hours= 22,000*1.4= 30,800 hours

Now, the total direct labor costs:

Total direct labor costs= 30,800*9.6

Total direct labor costs= $295,680

3 0

3 years ago

If a product costs £80 to manufacture and a 15% mark-up is added, the price at which the product will be sold is:

Yanka [14]

Answer:

92£

Explanation:

80 * 1.15 = 92

3 0

3 years ago

Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 194,000 R

Alinara [238K]

Answer:

Cost of land = $220,400

Cost of building = $0

Explanation:

The computation of the land and the cost of the new building is shown below:

Cost of land = Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building

= $194,000 + $16,900 + $2,700 + $3,900 + $2,900

= $220,400

The cost of the new building would be zero as all the costs are allocated to the cost of the land. So, no cost is allocated to the cost of the new building

7 0

3 years ago

On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, with credit terms of 2/10, n/30. The cost of

Ira Lisetskai [31]

Answer:

October 4

Inventory $350 (debit)

Cost of Sales $350 (credit)

Being Recognition of Inventory and de-recognition of cost of sale

Revenue $500 (debit)

Trade Receivable $500 (credit)

Being de-recognition of Revenue and Trade Receivables.

Explanation:

The Entries that Robertson Company should enter for the 2 dates are as follows :

October 1

Cost of Sales $4,000 (debit)

Inventory $ 4,000 (credit)

Being Recognition of Cost of Goods Sold

Trade Receivable $5,800 (debit)

Revenue $5,800 (debit)

Being Recognition of Revenue

October 4

Inventory $350 (debit)

Cost of Sales $350 (credit)

Being Recognition of Inventory and de-recognition of cost of sale

Revenue $500 (debit)

Trade Receivable $500 (credit)

Being de-recognition of Revenue and Trade Receivables.

3 0

3 years ago