Creating all the budgets (layouts) Flashcards
What are all the types of budget?
Sales budget
Production budget (units)
Purchase budget
Labour budget
Cash budget
What is the layout for a sales budget?
Month 1. Month 2. Month 3
Sales unit. X. X. X
Sales value £X. £X. £X
What is the layout of the production budget (units)?
Month 1. Month 2. Month 3
Sales. X. X. X
Opening stock (X). (X). (X)
Closing stock. X. X. X
Production X. X. X (this is the final value after taking OI form sales and adding CI)
What is the layout of the purchases budget (units)?
Month 1. Month 2. Month 3
Sales. X. X. X
Opening stock. (X). (X). (X)
Closing stock X. X. X
Purchases (units). X X X
Purchases cost (£). X X. X
What are the 2 labour budget layouts?
Month 1 Month 2 Month 3
Labour hours. X. X. X (
Labour cost(£) X. X. X (labour hours times pay)
Or
Production (units) X. X
Labour needed (hr). X. X
Labour available(hr) (X). (X)
Surplus/ shortage (hr) X. X
What is the layout of the cash budget?
Jan. Feb. Mar
Receipts £. £. £
Cash sales 18000. 19500. 21000
Credit sales (1month). 56000. 33600. 36400
Credit sales (2month). 12600. 14000. 8400
Rights issue. 260000
346600. 67100. 65800
Payments
Purchases. 30000. 32500. 35000
Operating expenses 15000. 16250. 17500
Dividend payment 50000
Loan repayment 350000
45000 398750. 102500
Net cash flow. 301600. (331650). (36700)
Opening balance 32500. 334100. 2450
Closing balance 334100. 2450. (34250)
What is the master budget layout?
Combination of all budgets to make a budget income statement or SFP
What happens to the closing balance form one month on the cash budget?
Becomes the opening balance for the next month
