CHAPTER 9

BUDGETARY PLANNING

OPERATING BUDGET:
H CYCLE

1 SALES BUDGET
FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
EXP UNIT SALES
UNIT SELLING PRICE
BUDGETED SALES

H CYCLE

2 PRODUCTION BUDGET
FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
EXP UNIT SALES
ADD: DESIRED ENDING F/G UNITS
TOTAL REQ UNITS
LESS: BEG F/G UNITS
UNIT TO BE PRODUCED

H CYCLE

3 DIRECT MATERIAL BUDGET

FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
UNITS TO BE PRODUCED
DM PER UNIT
PRODUCTION NEEDS
ADD: DES END DM (KG)
TOTAL NEEDS
LESS: BEG DM (KG)
DM TO BE PURCHASED
COST PER KG
TOTAL COSTS OF DM PURCHASES
 H CYCLE

4 DIRECT LABOR BUDGET

FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
UNIT TO BE PRODUCED
DL TIME PER UNIT
TOTAL HOURS NEEDED
DL COST PER HOUR
TOTAL DL COST

H CYCLE

5 MANUFACTURING OVERHEAD BUDGET

FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
VARIABLE COST:
IND MAT
IND LAB
UTILITIES
MAINTENANCE
TOTAL VC

FC:
SUPERVISORY SALARIES
DEPRECIATION
PROP TAXES AND INSURANCE
MAINTENANCE
TOTAL FC
TOTAL MOH
DLH
MO RATE PER DLH

H CYCLE

6 SELLING AND ADM EXP BUDGET

FTY ENDED DEC 31, 2020

Q1 Q2 Q3 Q4
BUDGETED SALES IN UNITS
VC:
SALES COMMISSIONS
FREIGHT OUT
TOTAL VAR EXP
FC:
ADVERTISING
SALES SALARIES
OFFICE SALARIES
DEPRE
PROP TAXES AND INSURANCE
TOTAL FIXED EXP
TOTAL SELLING AND ADM EXP

H CYCLE

COST PER UNIT

FTY ENDED DEC 31, 2020

COST ELEMENT: QUANTITY: UNIT COST: TOTAL:

DM
DL
MO
TOTAL UNIT COST

H CYCLE

7 BUDGETED INCOME STATEMENT

FTY ENDED DEC 31, 2008

SALES ?
LESS: COGS
GROSS MARGIN
LESS: SELLING AND ADM EXP
INCOME FROM OPERATIONS
LESS: INTEREST EXP
INCOME BEFORE INCOME TAXES
LESS: INCOME TAXES
NET INCOME
YEAR
UNIT

NOTE:

YEAR

NOTE:

YEAR
 NOTE:

YEAR

NOTE:

ET

YEAR

YEAR