80.2K

Verified Solution

Link Copied!

Apts AUT Enterprises has budgeted sales in units for the next five months as follows: June 4400 units July 4800 units August 5200 units September 4900 units October 5100 units Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 880 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in July is: 4880 units 5200 units O 4,840 units 4,800 units When preparing a direct materials budget, the required purchases of raw materials in units equals raw materials needed to meet the production schedule + desired ending inventory of raw materials + beginning inventory O raw materials needed to meet the production schedule - desired ending inventory of raw materials - begging mentory O raw materials needed to meet the production schedule - desired ending Inventory of raw materials beginning investory O raw materials needed to meet the production schedule + desired ending inventory of raw materials - beginning inventory me Which of the following statements is NOT correct concerning the Cash Budget? O The Cash Budget should be prepared before the Budgeted Income Statement The Cash Budget builds on earlier budgets and schedules as well as additional data. O It is not necessary to prepare any other budgets before preparing the Cash Budget. O The Cash Budget should be prepared before the Budgeted Balance Sheet. The direct labor budget is based on: (HINT: look back to question E14!) O the required materials purchases for the period. O the required production for the period. the beginning inventory of finished goods. O the desired ending inventory of finished goods

Answer & Explanation Solved by verified expert

See Answer