accounting Ch 8
one month to the end of the budget as each month comes to a close
Perpetual budget keeps managers focused at least one year ahead by adding
direct materials budget
Details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories
Beginning inventory of raw materials and ra materials required per unit
Needed to calculate raw materials to be purchased on the direct materials budget
merchandise purchases
The amount of goods for resale to be purchased from suppliers during the period is shown on the
the balance sheet as of Dec 31, 2015
To prepare a budgeted balance sheet as of Dec 31, 2016, data is needed from
the balance sheet from the year before
To prepare a budgeted balance sheet at the end of the year you'll need
depreciation
a significant non cash manufacturing overhead cost for many companies is
production budget and selling and administrative expense budget
based directly on info from the sales budget
perpetual budget
budget that keeps managers focused at least one year ahead is a continuous or
total sales on the sales budget
budgeted sales x sales price per unit
variable selling and administrative expenses
budgeted units sold x variable selling and administrative expense per unit
Ending finished goods inventory
cost of unsold units is computed on the
direct materials budget
details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories
ending cash balance
expected beginning cash balance + budgeted cash collections - cash disbursements
manufacturing overhead budget, direct labor budget, direct materials budget
need to calculate unit product costs
ending cash balance
take excess of cash available over disbursements plus the total financing
Budgeted income statment
the company's planned profit and serves as a benchmark against which subsequent company performance can be measured
predetermined overhead rate
total budgeted overhead / total budgeted direct-labor hours + variable manufacturing overhead rate
production budget
used to determine the budgets for manufacturing costs, including the direct materials budget, direct labor budget, and manufacturing overhead budget