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drek231 [11]
2 years ago
5

The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ

ction departments estimate the manufacturing overhead estimate the quantity of raw materials to be purchased estimate the unit cost of direct materials to be purchased Knowledge Check 02 In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ________. multiple choice 2 beginning balance of accounts payable desired ending raw materials inventory for the last period total merchandise purchased during the year value of raw material used during the year
Business
1 answer:
Eduardwww [97]2 years ago
3 0

Answer:

1. estimate the quantity of raw materials to be purchased.

2. ending raw materials inventory for the last period.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.

2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.

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Which of the following statements is(are) true? (A) A favorable variance is not necessarily good, and an unfavorable variance is
olganol [36]

Answer:

(B) The master budget includes operating budgets (e.g., production budget) and financial budgets (e.g., cash budget).

Explanation:

The master budget is a business approach which includes all the financial budget as well as the expected incoem statement adn balance sheet.

To do so, it wll need to prepare:

  • the sales budget
  • the production budget (using sales budget)
  • the purchase budget (using production)
  • collection budget (using sales)
  • cash budget (using all of the previous budget)
  • And then combine all this data to create an income statement and balance sheet for the period.
3 0
3 years ago
Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a
labwork [276]

Answer:

the company’s cost of preferred stock is 10.53%.

Explanation:

given information:

perpetual preferred stock = $57.00

a constant annual dividend = $6.00

to determine the company’s cost of preferred stock we can use the following formula

cost of preferred stock = \frac{ annual dividend}{preferred stock}

                                   = \frac{6.00}{57.00}

                                   =10.53%

therefore, the company’s cost of preferred stock is 10.53%.

8 0
3 years ago
On January 1, Franz Co. accepted a 30-day, 6% note in the amount of $5,000 from Bria Co., a customer. On January 31, the due dat
Blababa [14]

Answer:

The answer is:

Dr Cash $5,025

Cr: Receivable $5,000

Cr: Interest Revenue $25

Explanation:

The year is 360 days.

Annual rate is 6%

Therefore, interest rare for the 30-day is 1.5%[(90/360) x 6%]

So, the interest on the rate is:

0.5% x $5,000

$25.

The total amount collected from Bria will be principal + interest

$5,000 + $25 = $5,025

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have:

Dr Cash $5,025

Cr: Receivable $5,000

Cr: Interest Revenue $25

4 0
3 years ago
Which of the following statements about business processes is not true?Question 3 options:A) Business processes are a collection
natali 33 [55]

Answer:

E.

Explanation:

The information system is very important in business processes because help managers in efficient decision making to achieve the organizational goals.

An organization will be able to survive and thrive in a highly competitive enviroment on the strength of a well desing information system.

Helps in making right decisions at the right time, or just in time. A good information system may be utilized by managers in unusual situations.

It is viewed as a process, it can be integrated to formulate a strategy of action or operation.

8 0
3 years ago
A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage
sergiy2304 [10]

Answer:

e. 10,500 units.

Explanation:

<em>the equivalent units of production - direct materials</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to direct materials</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

<em>the equivalent units of production - conversion costs</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to conversion costs</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

5 0
3 years ago
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