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A. $302,000 b. $305,000 c. $350,000 d. $338,000 ANS: D DIF: Moderate OBJ: 22-02 NAT: AACSB Analytic | IMA-Budget Preparation 24. The production budgets are used to prepare which of the following budgets? A. Operating expenses b. Direct materials purchases, direct labor cost, factory overhead cost c. Sales in dollars d. Sales in units ANS: B DIF: Easy OBJ: 22-03 NAT: AACSB Analytic | IMA-Budget Preparation 25. Principal components of a master budget include which of the following? 27. Machine Manufacturers, Inc. Projected sales of 66,000 machines for 2008. The estimated January 1, 2008, inventory is 6,500 units, and the desired December 31, 2008, inventory is 7,000 units. What is the budgeted production (in units) for 2008? A. 65,500 b. 66,000 c. 66,500 d. 65,000 ANS: C DIF: Easy OBJ: 22-03 NAT: AACSB Analytic | IMA-Budget Preparation 28. The budget that needs to be completed first when preparing the master budget is the: a. Production Budget b. Sales Budget c. Cash Budget d. Capit

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