ch21 2 Flashcards
Budgeted Revenue = Expected Sales Volume × Expected Unit Sales Price
Sales Budget:
Total Units to be Produced =
(Expected Units to be Sold + Desired Ending Inventory) - Estimated Beginning Inventory
Production Budget:
Budgeted Direct Materials Required for Production =
Budgeted Production Volume × Direct Material Expected per Unit
Direct Materials Purchases Budget:
Direct Material Quantity to be Purchased =
(Materials Required for Production + Desired Ending Materials Inventory) - Estimated Beginning Materials Inventory
Direct Materials Purchases Budget:
Budgeted Direct Material Cost to be Purchased =
Direct Material Quantity to be Purchased × Unit Price
Direct Materials Purchases Budget:
Budgeted Direct Labor Hours Required for Production =
Budgeted Production Volume × Direct Labor Hours per Unit
Direct Labor Cost Budget:
Total Direct Labor Cost =
Direct Labor Hours Required × Hourly Rate
Direct Labor Cost Budget:
Includes Fixed Costs and Variable Costs that support budgeted production.
Factory Overhead Cost Budget
Budgeted Cash Collected =
Cash Collected from Previous Month’s Sales + Cash Collected from Current Month’s Sales
Cash Budget:
Budgeted Cash Payments =
Operating Costs + Manufacturing Costs + Selling & Administrative Expenses + Capital Expenditures + Other Payments
(Excluding non-cash expenses like depreciation)
Cash Budget:
Ending Cash Balance =
(Beginning Cash Balance + Total Receipts) - Total Payments
Cash Budget:
Cash Excess or Deficiency =
Ending Cash Balance - Minimum Required Cash Balance
Cash Budget:
Summarizes planned investments in fixed assets.
Capital Expenditure Budget:
- Prepared using estimates from operating and financial budgets.
Budgeted Balance Sheet:
