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ACTG2020_Week8 Ch9_2014

00 l bs 040 direct labour 005 hrs 1000 manufacturing

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Unformatted text preview: g inventory in units Unit product cost Ending finished goods inventory Total $ 2.00 0.50 2.49 $ 4.99 $ 4.99 ? Total mfg. OH for quarter $251,000 = $49.70 per hour * Total labour hours required 5,050 LO 2 Ending Finished Goods Inventory Budget Production costs per unit Quantity Cost Direct materials 5.00 l bs. $ 0.40 Direct labour 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 Total $ 2.00 0.50 2.49 $ 4.99 5,000 $ 4.99 $ 24,950 Production Budget. LO 2 The Selling and Administrative Expense Budget Ending Finished d te e Goods pl Inventory Inventory om C Budget Budget Selling and Administrative Expense Budget The selling and administrative expense budget The lists the budgeted expenses for areas other than manufacturing. manufacturing. LO 2 Selling and Administrative Expense Budget At Royal, the selling and administrative expenses budget is 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. LO 2 Selling and Administrative Expense Budget Calculate the selling and administrative cash expenses for the quarter. LO 2 Selling and Administrative Expense Budget LO 2 The Cash Budget Selling and d e et Administrative pl ECom xpense Expense Budget Budget Cash Budget The cash budget pulls together much of the data The developed in the preceding steps and displays it in four major sections: receipts, disbursements, cash excess or deficiency, and financing. excess LO 2 Format of the Cash Budget The cash budget is divided into four sections: 1. Cash receipts listing all cash inflows excluding borrowing; 2. Cash disbursements listing all payments excluding repayments of principal and interest; 3...
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