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