QUESTION 5 gures for accounts receivable and payables to sup

QUESTION 5 gures for accounts receivable and payables to suppliers would be found on the: cash budget. budgeted schedule of cost of goods manufactured O budgeted income statement. budgeted balance sheet. budgeted statement of cash flows. QUESTION 6 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Sales are projected to be 670,000 units for the year Finished goods (unils).... Raw material (gram... Beginning Inventory 20,000 50,000 Ending Inventory 70,000 40,000 Each unit of finished goods requires 2 grams of raw material How much of the raw material should the company purchase during the year? 1,430,000 grams 1,450,000 grams 1,480,000 grams 1,440,000 grams

Solution

4.

Option A is correct.

Purchases for Dec = COGS + Closing stock -opening stock

= 262500 + 166500 - 157500

= $ 271500

5.

Option D is correct. Budgeted Balance sheet.

6.

Option A is correct.

1430000 Grams

Total units required during the year = 670000+70000 - 20000

= 720000

Gram required = 720000 * 2

= 1440000

Purchases = 1440000 - 50000 + 40000

= 1430000 Grams

10.

Option E is correct.

I, II, III are correct.

15.

Option E is correct.

There will be less ethical issues as it is participative budget.