ACCS Review Exam with Accurate
Answers
There are various budgets within the master budget. One of these budgets is the production
budget. Which of the following BEST describes the production budget?
A) It details the required direct labor hours.
B) It details the required raw materials purchases.
C) It is calculated based on the sales budget and the desired ending inventory.
D) It summarizes the costs of producing units for the budget period. - ✔✔C) It is calculated
based on the sales budget and the desired ending inventory
Which of the following statements is NOT correct concerning the Manufacturing Overhead
Budget?
A) The Manufacturing Overhead Budget provides a schedule of all costs of production other
than direct materials and labor costs.
B) The Manufacturing Overhead Budget shows only the variable portion of manufacturing
overhead.
C) The Manufacturing Overhead Budget shows the expected cash disbursements for
manufacturing overhead.
D) The Manufacturing Overhead Budget is prepared after the Sales Budget - ✔✔B) The
Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead.
Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is
$105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800,
and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected
in the month of the sale and 60% in the following month.
The budgeted accounts receivable balance at the end of August is closest to:
A) $525,000
B) $315,000
, C) $472,500
D) $787,500 - ✔✔C) $472,500
Douglas Corporation plans to sell 24,000 units of Product A during July and 30,000 units during
August. Sales of Product A during June were 25,000 units. Past experience has shown that end-
of-month inventory should equal 3,000 units plus 30% of the next month's sales. On June 30
this requirement was met. Based on these data, how many units of Product A must be
produced during the month of July?
A) 28,800
B) 22,200
C) 24,000
D) 25,800 - ✔✔D) 25,800
Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April
are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory
equals 20% of the following month's sales. The ending raw materials inventory equals 40% of
the following month's raw materials production needs. Each unit of finished goods requires 5
pounds of raw materials. If 61,000 pounds of raw materials are required for production in
March, then the budgeted raw material purchases for February is closest to:
A) 58,900 pounds
B) 104,900 pounds
C) 57,500 pounds
D) 81,900 pounds - ✔✔A) 58,900 pounds
Sleeter Corporation makes one product and it provided the following information to help
prepare the master budget for the next four months of operations:
a. Budgeted unit sales for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units,
respectively. All sales are on credit.
b. The ending finished goods inventory equals 30% of the following month's sales.
Answers
There are various budgets within the master budget. One of these budgets is the production
budget. Which of the following BEST describes the production budget?
A) It details the required direct labor hours.
B) It details the required raw materials purchases.
C) It is calculated based on the sales budget and the desired ending inventory.
D) It summarizes the costs of producing units for the budget period. - ✔✔C) It is calculated
based on the sales budget and the desired ending inventory
Which of the following statements is NOT correct concerning the Manufacturing Overhead
Budget?
A) The Manufacturing Overhead Budget provides a schedule of all costs of production other
than direct materials and labor costs.
B) The Manufacturing Overhead Budget shows only the variable portion of manufacturing
overhead.
C) The Manufacturing Overhead Budget shows the expected cash disbursements for
manufacturing overhead.
D) The Manufacturing Overhead Budget is prepared after the Sales Budget - ✔✔B) The
Manufacturing Overhead Budget shows only the variable portion of manufacturing overhead.
Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is
$105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800,
and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected
in the month of the sale and 60% in the following month.
The budgeted accounts receivable balance at the end of August is closest to:
A) $525,000
B) $315,000
, C) $472,500
D) $787,500 - ✔✔C) $472,500
Douglas Corporation plans to sell 24,000 units of Product A during July and 30,000 units during
August. Sales of Product A during June were 25,000 units. Past experience has shown that end-
of-month inventory should equal 3,000 units plus 30% of the next month's sales. On June 30
this requirement was met. Based on these data, how many units of Product A must be
produced during the month of July?
A) 28,800
B) 22,200
C) 24,000
D) 25,800 - ✔✔D) 25,800
Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April
are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory
equals 20% of the following month's sales. The ending raw materials inventory equals 40% of
the following month's raw materials production needs. Each unit of finished goods requires 5
pounds of raw materials. If 61,000 pounds of raw materials are required for production in
March, then the budgeted raw material purchases for February is closest to:
A) 58,900 pounds
B) 104,900 pounds
C) 57,500 pounds
D) 81,900 pounds - ✔✔A) 58,900 pounds
Sleeter Corporation makes one product and it provided the following information to help
prepare the master budget for the next four months of operations:
a. Budgeted unit sales for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units,
respectively. All sales are on credit.
b. The ending finished goods inventory equals 30% of the following month's sales.
