AC 361 Chapter 8

What is needed to calculate raw materials to be purchased on the direct materials budget?

- beginning inventory of raw materials - raw materials required per unit

Which budgets are needed to calculate unit product costs?

- direct materials budget - direct labor budget - manufacturing overhead budget

Which budgets are directly based on information from the sales budget?

- production budget - selling and administrative expense budget

The cost of unsold units is computed on the __________ budget.

ending finished goods inventory

The cash budget:

is prepared near the end of the master budget process

All costs of production other than direct materials and direct labor are shown on the __________ budget.

manufacturing overhead

The amount of goods to be purchased from suppliers during the period is shown on the __________ budget.

merchandise purchases

A budget that is prepared with the full cooperation at all levels of management is a self-imposed or __________ budget.

participative

In a manufacturing company, the __________ budget shows the number of units that must be manufactured to satisfy sales needs and provide for the desired ending inventory.

production

The first step in the budgeting process is preparing the __________ budget.

sales

Budgeted expenses for areas other than manufacturing are shown on the __________ budget.

selling and administrative

What is needed to prepare a sales budget?

the budgeted number of units to be sold

To prepare a budgeted balance sheet as of December 31, 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 shows the company's planned profit and serves as a benchmark against which subsequent company performance can be measured?

budgeted income statement

The number of working hours required to satisfy the production budget is shown on the __________ __________ budget.

direct labor

Ina manufacturing company, the _________ budget details the raw materials that must be purchased to fulfill the production budget and provide for adequate inventories.

direct materials

The section on the cash budget that summarized all cash payments that are planned for the budget period is the cash __________ section.

disbursement