Ch 09 Solutions 3

Ch 09 Solutions 3 - 9 The Operating Budget SOLUTIONS TO...

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9 The Operating Budget SOLUTIONS TO APPLY WHAT YOU HAVE LEARNED 9-23. 1. 6 Cash budget 2. 5 Budgeted financial statements 3. 2 Purchases budget 4. 1 Sales budget 5. 3,4 Administrative expense budget 6. 3,4 Selling expense budget 9-24. 1. BA Budgeting process forces managers at various levels to think about future activities. 2. TA Top manager is more knowledgeable. 3. BD Employees at various levels must take time from their schedules to work on the budget. 4. BA Employees will be more eager to work toward goals they helped set. 5. BA Employees feel more like part of the company team. 6. TA Top manager is more aware of company goals. 7. BD Employees may try to pad the budget. 8. TD Employees are less accepting of budgeted goals if they had no part in setting them. 9. TD Top manager lacks detailed knowledge required to prepare budgets. Chapter 9 – The Operating Budget 30
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9-25. 1. e Lower-level managers and employees initially prepare the budget. 2. c Each item on the budget must be justified each year. 3. a The budget is updated every month. 4. d Lower-level managers generally do not participate in budget preparation. 5. b Uses the prior year’s budget to build the new budget. 9-26. Tom Norris Computer Company Sales Budget For the Year 2011 Quarter 1 2 3 4 Total Forecasted unit sales 6,000 7,000 9,000 12,000 34,000 Forecasted sales price $ 11 $ 11 $ 11 $ 11 $ 11 Budgeted sales $66,000 $77,000 $99,000 $132,000 $374,000 9-27. Paul Elsea's Barber Supply Company Sales Budget For the Year 2011 Quarter 1 2 3 4 Total Forecasted unit sales 100 90 130 150 470 Forecasted sales price $ 67 $ 67 $ 67 $ 67 $ 67 Budgeted sales $6,700 $6,030 $8,710 $10,050 $31,490 Chapter 9 – The Operating Budget 31
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9-28. Taub Yo Yo Company Sales Budget For the First Quarter 2011 Jan Feb Mar Total Forecasted unit sales 20,000 25,000 30,000 75,000 Forecasted sales price $ 1.20 $ 1.20 $ 1.20 $ 1.20 Budgeted Sales $24,000 $30,000 $36,000 $90,000 9-29. The Golden Bird Cage Company Sales Budget For the Year 2011 Quarter 1 2 3 4 Total Unit sales forecasted 2,500 2,100 3,800 3,100 11,500 Sales price $ 88 $ 88 $ 88 $ 88 $ 88 Budgeted sales $220,000 $184,800 $334,400 $272,800 $1,012,000 9-30. Easy-Glide Strollers Sales Budget For the First Quarter 2011 Jan Feb Mar Total Forecasted unit sales 22,500 22,500 28,000 73,000 Forecasted sales price $ 59 $ 59 $ 59 $ 59 Budgeted sales $1,327,500 $1,327,500 $1,652,000 $4,307,000 Chapter 9 – The Operating Budget 32
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9-31. Florence Marie's Hat Shop Purchases Budget For the First Quarter 2011 Jan Feb Mar Total Forecasted unit sales 200 250 300 750 Desired ending inv. 50 60 64 64 Total units needed 250 310 364 814 Beginning inventory (40 ) (50 ) (60 ) (40 ) Units to be purchased 210 260 304 774 Cost per unit $ 6 $ 6 $ 6 $ 6 Cost of purchases $1,260 $1,560 $1,824 $4,644 9-32. a.
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This note was uploaded on 01/19/2012 for the course ACC 212 taught by Professor Quintanna during the Spring '08 term at University of Miami.

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Ch 09 Solutions 3 - 9 The Operating Budget SOLUTIONS TO...

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