Question

Question 1 The first step in the master budgeting process is to prepare: Not yet answered Marked out of 1.00 Flag question Select one: O a. A cash budget O b. The production budget O c. A balance sheet O d. The direct materials budget O e. The sales budget What does the amount that is transferred out from Work-In-Process account show? Question 2 Not yet answered Marked out of 1.00 Flag question Select one: O a. The amount of costs to be transferred to cost of goods sold O b. The total costs of incomplete jobs at the end of the period O c. The amount of over-applied overhead costs offset against WIP O d. The amount of costs to be transferred out to finished goods O e. The total costs of jobs completed during the period

Answer 1

Solution: Q1 The first step in the master budgeting process is to prepare: e. Sales budget (All other budgets are directly or indirectly dependend on sales budget) Q2 what does the amount that is transferred out from work in process account show? e. Total cost of jobs completed during the period (At the end of period, cost of completed goods is transferred from WIP inventory to Finished goods inventory and incomplete jobs are shown as part of closing WIP inventory)