Chapter 9 - MATHS Flashcards
How do we organize the SALES Budget?
Budgeted Sales Units * Unit price = Budgeted Sales
How do we organize Expected CASH COLLECTION?
A/R + Quarterly Sales Collections = Total Cash Collections
How do we organize the PRODUCTION Budget?
Budgeted Unit Sales + Desired Ending Inventory = Total Needs - Inventory (Begin) = Required Production
Other applications to the Production Budget?
Can be used for Inventory Purchases and DM Purchases,
How do we organize the DL Budget?
Units to Produce * DLH = Total DL time needed * DL cost per hour = Total DL Cost
How do we get Variable MO?
Total DL time needed * Variable Overhead Rate
How do we get Cash Disbursements for MO?
Fixed MO + Variable Manufacturing Overhead - Depreciation
Predetermined Overhead Rate for the Year?
Total MO / Budgeted DLH
How do we prepare MO Budget?
Variable MO + Cash Disbursements for MO. Aside place Predetermined Overhead Rate for the Year
How do we prepare Budgeted Finished Goods Inventory Cost?
Ending finished goods inventory * Unit Product Cost in absorption style.
How do we prepare the cash budget?
Cash Balance (Begin) + Add receipts = Total cash before financing - Disbursements
What are classified as receipts?
Collections from Customers
What is a disbursement?
DL, DM and MO. Any purchases made
Required Borrowings at the End of a Quarter?
Desired ending Cash Balance + Deficiency in Cash Budget = Required Borrowings
