Chapter 6 Week 2 Day 2 Spring 2010 Revised

Chapter 6 Week 2 Day 2 Spring 2010 Revised - purchase....

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Chapter 6 Week 2 Day 2 (Mar. 17 th ) Planning, the Balanced Scorecard and Budgeting 6-1
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6-2 The Master Budget Revenue process budgets Conversion process budgets Expenditure process budgets Capital resources process budgets (later in text) Budgeted (pro forma) financial statements
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6-3 What are the Budgets that Result from Expenditure Process Planning? Administrative budget Direct labor and manufacturing overhead budget Direct materials purchases budget Cash disbursements schedule Accounts payable schedule
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6-4 Cash Disbursement Schedule When—payment patterns How much—purchase discounts
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6-5 Cash Disbursements Schedule ABC estimates that 80% of its purchases will be paid the month purchased in time to take advantage of a 3/10, n/30 discount offered by their suppliers. 15% will be paid in the month purchased but after the discount period and 5% the month after the
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Unformatted text preview: purchase. Estimated direct material purchases: January $39,095 February $42,413 March $34,800 6-6 Cash Disbursements Schedule all numbers are rounded! January February March Within discount period (80%) $30,338 $32,912 $27,005 Within month Purchased (15%) 5,864 6,362 5,220 Month after Purchase (5%) 2,670 1,955 2,121 Total Cash Paid $38,872 $41,229 $34,346 Cash Discounts $938 $1,018 $835 6-7 Accounts Payable Schedule Beginning balance Add purchases Less cash payments Less discounts taken Equals ending balance 6-8 Accounts Payable Schedule January February March Beginning Bal. $2,670 $1,955 $2,121 + Purchases +39,095 +42,413-Cash Paid-38,872-41,229-Discounts taken-938-1,018 Ending Balance $1,955 $2,121 6-9 To Do List. Chapter 6 homework Read Chapter 7 Are you getting it?...
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This note was uploaded on 04/18/2010 for the course ACCT 12995 taught by Professor Krisj.clark during the Spring '10 term at Georgia State University, Atlanta.

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Chapter 6 Week 2 Day 2 Spring 2010 Revised - purchase....

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