Question 1

Gusler Corporation makes one product and has provided the following information:  The estimated cost of goods sold for May is closest to:

Accepted Answer

A)   $807,500
B)   $256,500
C)   $646,000
D)   $551,000

Question 2

Sparks Corporation has a cash balance of $17,700 on April 1. The company must maintain a minimum cash balance of $14,500. During April, expected cash receipts are $65,000. Cash disbursements during the month are expected to total $77,500. Ignoring interest payments, during April the company will need to borrow:

Accepted Answer

A)   $9,300
B)   $5,200
C)   $14,500
D)   $12,500

Question 3

The production budget is typically prepared prior to the sales budget.

Accepted Answer

A) True 
 B)False

Question 4

The LaGrange Corporation had the following budgeted sales for the first half of the current year:  The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on sales:60% in month of sale30% in month following sale10% in second month following saleThe accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales.The total cash collected during January by LaGrange Corporation would be:

Accepted Answer

A)   $410,000
B)   $254,000
C)   $344,000
D)   $331,500

Exam 8: Master Budgeting

The production budget is typically prepared prior to the sales budget.

Correct Answer
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Correct Answer
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Correct Answer
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Gusler Corporation makes one product and has provided the following information: The estimated cost of goods sold for May is closest to:

Correct Answer
verified

Exam 8: Master Budgeting

The production budget is typically prepared prior to the sales budget.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Gusler Corporation makes one product and has provided the following information: The estimated cost of goods sold for May is closest to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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