Unit 6 - Budgeting Calculations Cartes | Quizlet

What is the master budget?

A summary of individual budgets, usually consisting of a budgeted income statement and perhaps, a summarised cash budget

A diagram of the master budget

An example of an income statement

An example of a balance sheet

An example of a cash flow budget

How to calculate sales

The amount of units anticipated to be sold x Sales price

What is the cost of sales (as opposed to sales)?

The amount of units anticipated to be sold x The anticipated cost of producing a unit

How to calculate cost of sales

Cost of opening inventory + Total purchases to create stock - Cost of closing inventory (stock)

How to calculate sales budget

Budgeted sales / Selling price

What is closing inventory?

The value at the end of the period of time

What is opening inventory?

The value at the beginning of the period of time, which is the same as the closing inventory of the previous period of time

How to calculate production budget

Sales units + (The closing stock percentage x Opening inventory) - (The closing stock percentage x Closing inventory)

How to calculate material usage budget

Production budget x The amount of materials per unit

How to calculate materials purchases budget

Material usage budget + (Stock of material percentage x Closing material usage budget) - (Stock of material percentage x Opening materials usage budget)

How to calculate labour hours

Production budget x Hours per unit

How to calculate labour cost

Labour hours x Labour cost per hour

How to calculate how much will be paid/received in a period of time

(Following percentage x Previous time) + (Previous percentage x This time)

How to say when the purchases a period of time will be paid for

Give the percentage in that period of time (showing a calculation), then a percentage for the next period(s) of time (showing a calculation)

Examples of assets from budgeting

Trade receivables and inventories

An example of a liability from budgeting

Trade payables