Question 1
Antique Brass Company has budgeted sales volume of 122,000 units and budgeted production of 114,000 units, while 24,000 units are in beginning finished goods inventory. How many units are targeted for ending finished goods inventory?
◦ 24,000 units
◦ 32,000 units
◦ 8,000 units
◦ 16,000 units
Question 2
Best products, an Atlanta based company, is in the midst of its budgeting process. It has already prepared its direct materials usage budget and is now in the process of preparing its direct material purchase budget. In addition to the details gathered to prepare the direct materials usage budget, Best also must know ________.
◦ the target direct materials ending inventory
◦ the ratio of direct materials to cost of goods sold
◦ the beginning direct materials inventory level
◦ the quantity of direct materials to be purchased
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