Chapter 8 Budgets Flashcards
1
Q
Production Budget
A
- Budgeted Unit Sales
- Desired Units of Ending Finished Goods Inventory
(Add 1 and 2) 3. Total Needs - Units of Beginning Finished Goods Inventory
(subtract 3 and 4) 5.Required Production in Units
2
Q
Merchandise Purchases Budget
A
1. Budgeted COGS \+Desired Ending Merchandise Inventory 3. Total Needs (minus) Beginning merchandise inventory 5. Required Purchases
3
Q
Direct Materials Budget
A
- Required Production in Units of a finished good
2.units of raw materials needed per unit of finished goods
(Multiply 1 and 2) 3. Units of raw materials needed to meet production
4.Add desired units of ending raw materials inventory
(Add 3 and 4) 5. Total Units of Raw Materials Needed - Units of Beginning raw materials inventory
(Subtract 5 from 6) 7.Units of raw materials to be purchased - Unit cost of raw materials
(multiply 7 & 8) Cost of raw materials to be purchased
4
Q
Direct Labor Budget
A
- Required Production in units (Schedule 2)
2.Direct labor-hours per unit
(multiply 1 & 2) 3. Total Direct Labor-Hours Needed - Direct Labor cost per hour
(Multiply 3 & 4) Total Direct Labor Cost
5
Q
Manufacturing Overhead Budget
A
- Budgeted Direct Labor-Hours (schedule 4)
- Variable Manufacturing Overhead Rate
- (multiply 1 and 2) Variable Manufacturing Overhead
- Fixed Manufacturing Overhead
- (Add 3 and 4) Total Manufacturing Overhead
- Depreciation
- (Subtract 5 and 6) Cash Disbursements for manufacturing overhead
Total Manufacturing Overhead (a)
Budgeted Direct Labor-Hours (b)
(subtract a and b) Predetermined Overhead rate for the year
6
Q
Ending Finished Goods Inventory Budget
A
Production Cost Per Unit 1. Direct Materials 2. Direct Labor 3. Manufacturing Overhead (add all 3) Unit Product Cost
Budgeted Finished Goods Inventory
1. Ending Finished Goods Inventory in Units (Schedule 2)
2. Unit Product Costs (see above)
(Add the 1 and 2) Ending Finished Goods Inventory in Dollars
7
Q
Selling and Admin Expense Budget
A
- Budgeted Unit Sales (Schedule 1)
- Variable Selling & Admin Expense per unit
(multiply 1 and 2) 3. Variable Selling and Admin Expense
Fixed Selling and Admin Expense - Advertising
2.Executive Salaries - Insurance
- Property Taxes
5.Depreciation
(Add 1 thru 5) 6. Total Fixed Selling and Admin Expenses
(Add Variable &Fixed Selling & Admin) 7. Total S&A Expense - Depreciation
(minus 7 &8) Cash Disbursments for selling &admin expenses