Questions from Accounting Principles

Q: Wells Company reports the following budgeted sales: September, $55

Wells Company reports the following budgeted sales: September, $55,000; October, $66,000; and November, $80,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Co...

Q: Kingston budgets total sales for June and July of $420,

Kingston budgets total sales for June and July of $420,000 and $398,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 70% are collected...

Q: Santos Co. is preparing a cash budget for February. The

Santos Co. is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and budgets $75,000 in cash receipts from sales and $100,250 in cash payments during Febru...

Q: Torres Co. budgets merchandise purchases of $15,800 in

Torres Co. budgets merchandise purchases of $15,800 in January, $18,600 in February, and $20,200 in March. For those purchases, 40% of purchases are paid in the month of purchase and 60% are paid in t...

Q: Apple regularly uses budgets. What is the difference between a production

Apple regularly uses budgets. What is the difference between a production budget and a manufacturing budget?

Q: Raider-X Company budgets sales of 18,000 units for

Raider-X Company budgets sales of 18,000 units for April and 20,000 units for May. Beginning inventory on April 1 is 3,600 units, and the company wants to have 20% of next month’s unit sales in invent...

Q: Montel Company’s July sales budget shows sales of $600,000

Montel Company’s July sales budget shows sales of $600,000. The company budgets beginning merchandise inventory of $50,000 and ending merchandise inventory of $40,000 for July. Cost of goods sold is 6...

Q: For each of the following indicate yes if it describes a potential

For each of the following indicate yes if it describes a potential benefit of budgeting or no if it describes a potential negative outcome of budgeting. 1. Budgets help coordinate activities across de...

Q: Scora Inc. sells a single product for $50 per unit

Scora Inc. sells a single product for $50 per unit. Budgeted sales units for the next three months follow. Prepare a sales budget for the months of January, February, and March.

Q: Zahn Co. budgets sales of 220 units in May and 240

Zahn Co. budgets sales of 220 units in May and 240 units in June. Each month’s ending inventory should be 25% of the next month’s sales. The April 30 ending finished goods inventory is 55 units. Prepa...