extra accounting

in the manufacturing company, the ----- budget is prepares right after the sales budget

production

the direct labor budget is based on the ------ budget

production budget

how do you the required production when you're given the budgeted sales # of units, desired ending inventory # of units and the beginning inventory # of units

required production = budgeted sales + desired ending inventory - beginning inventory if we are trying to figure out how many units we need to make, take how many sales you plan to make + how many units you want to end with and then subtract how many units you already have and you'll be left with what you need to make

how do you calculate the expected total direct labor cost

units to be produced x time per unit x rate per hour

how do you find the total selling and administrative expenses

variable selling and administrative expenses + fixed selling and administrative expenses

davidson Corporation's master budget shows expected direct labor costs of $90,000 for the month of May. During May, the company's expected sales equal 12,000 units and expected production is 15,000 units. If each unit requires 1/2 hour of direct labor, the budgeted direct labor rate is $----- per hour

$12 per hour 15,000 x 1/2= 7,500 required labor hours $90,000/7,500 = $12 per hour

Madison Corp expected budget cash balance is $35,000. Cash collections are budgeted at $50,000 and cash disbursements are estimated to be $80,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $10,000. Calculate the expected ending cash balance for the month

$25,000 $35,000 + $50,000 - $80,000 = $5,000 but since they need to have a minimum of $20,000 and they can only borrow in increments of $10,000 they need to borrow $20,000 which leaves them with $25,000 as their expected ending cash balance

given budgeted sales of 10,000 units, desires ending inventory of 5,000 units, and beginning inventory of 2,000 units, required production is....

13,000 units 10,000 + 5,000 - 2,000 = 13,000

Sperling Company's master budget shows expected sales of 10,000 units and expected production of 11,000 units for the month of March. Each unit requires 1/2 hour of direct labor. The direct labor rate is $15 per hour. Calculate the expected total direct labor cost for the month of March

82,500

to prepare a budget balance sheet as of December 21, 2016, data is needed from the -----

balance sheet as of December 31, 2015

a budgeted balance sheet is developed using data from the ---- of the budget period and data contained in the various schedules

beginning

what does a merchandise purchase budget include

budgeted cost of goods sold add desired ending inventory total needs less beginning inventory required purchases

a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed is called an ----

continuous or perpetual budget

payments for direct materials, direct labor, and manufacturing overhead costs are listed in the --- section of the cash budget

disbursements

using budget assumptions when preparing the master budget: involved adjusting data inputs within each master budget schedule increases the complexity of the process makes it easier to answer "what if" questions

makes it easier to answer "what if" questions