00 l bs 040 direct labor 005 hrs 1000 manufacturing

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Unformatted text preview: hed Goods Inventory Budget Production costs per unit Quantity Cost Direct materials 5.00 l bs. $ 0.40 Direct labor 0.05 hrs. $ 10.00 Manufacturing overhead 0.05 hrs. $ 49.70 $ $ Budgeted finished goods inventory Ending inventory in units Unit product cost Ending finished goods inventory Production Budget. Total 2.00 0.50 2.49 4.99 5,000 $ 4.99 $ 24,950 Selling and Administra7ve Expense —༉  Budget elling and administrative expense budget is At ABC, the s divided into variable and fixed components. —༉  The variable selling and administrative expenses are $0.50 per unit sold. —༉  Fixed selling and administrative expenses are $70,000 per month. —༉  The fixed selling and administrative expenses include $10,000 in costs – primarily depreciation – that are not cash outflows of the current month. Let’s prepare the company’s selling and administrative expense budget. Selling and Administra7ve Expense Budget Calculate the selling and administrative cash expenses for the quarter. Selling Administra7ve Expense Budget Sample Master Budget, Illustrated Format of the Cash Budget The cash budget is divided into four sections: 1.  Cash receipts section lists all cash inflows excluding cash received from financing; 2.  Cash disbursements section consists of all cash payments excluding repayments of principal and interest; 3.  Cash excess or deficiency section determines if the company will need to borrow money or if it will be able to repay funds previously borrowed; and 4.  Financing section details the borrowings and repayments projected to take place during the budget period. The Cash Budget Assume the following information for ABC: Ø། Maintains a 16% open line of credit for $75,000 Ø། Maintains a...
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