【正文】 l mfg. OH for quarter $251,000 Total labor hours required 5,050 = $ per hour * McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 75 P r o d u c t i o n c o s t s p e r u n i t Q u a n t i t y C o s t T o t a l D i r e c t m a t e r i a l s 5 . 0 0 l b s . 0 . 4 0$ 2 . 0 0$ D i r e c t l a b o r 0 . 0 5 h r s . 1 0 . 0 0$ 0 . 5 0 M a n u f a c t u r i n g o v e r h e a d 0 . 0 5 h r s . 4 9 . 7 0$ 2 . 4 9 4 . 9 9$ B u d g e t e d f i n i s h e d g o o d s i n v e n t o r y E n d i n g i n v e n t o r y i n u n i t s 5 , 0 0 0 U n i t p r o d u c t c o s t 4 . 9 9$ E n d i n g f i n i s h e d g o o d s i n v e n t o r y 2 4 , 9 5 0$ Ending Finished Goods Inventory Budget Production Budget. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 76 Learning Objective 4 (f) Prepare a selling and administrative expense budget. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 77 Selling and Administrative Expense Budget ? At Royal, the selling and administrative expense budget is divided into variable and fixed ponents. ? The variable selling and administrative expenses are $ 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 pany’s selling and administrative expense budget. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 78 Selling and Administrative Expense Budget Calculate the selling and administrative cash expenses for the quarter. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 79 Quick Check ? What are the total cash disbursements for selling and administrative expenses for the quarter? a. $180,000 b. $230,000 c. $110,000 d. $ 70,000 McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 80 What are the total cash disbursements for selling and administrative expenses for the quarter? a. $180,000 b. $230,000 c. $110,000 d. $ 70,000 Quick Check ? McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 81 Selling Administrative Expense Budget McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 82 Learning Objective 4 (g) Prepare a cash budget. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 83 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 pany 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. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 84 The Cash Budget Assume the following information for Royal: ?Maintains a 16% open line of credit for $75,000 ?Maintains a minimum cash balance of $30,000 ?Borrows on the first day of the month and repays loans on the last day of the month ?Pays a cash dividend of $49,000 in April ?Purchases $143,700 of equipment in May and $48,300 in June (both purchases paid in cash) ?Has an April 1 cash balance of $40,000 McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 85 The Cash Budget Schedule of Expected Cash Collections. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 86 The Cash Budget Direct Labor Budget. Manufacturing Overhead Budget. Selling and Administrative Expense Budget. Schedule of Expected Cash Disbursements. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 87 The Cash Budget Because Royal maintains a cash balance of $30,000, the pany must borrow $50,000 on its lineofcredit. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 88 The Cash Budget Ending cash balance for April is the beginning May balance. Because Royal maintains a cash balance of $30,000, the pany must borrow $50,000 on its lineofcredit. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 89 The Cash Budget McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 90 Quick Check ? What is the excess (deficiency) of cash available over disbursements for June? a. $ 85,000 b. $(10,000) c. $ 75,000 d. $ 95,000 McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 91 What is the excess (deficiency) of cash available over disbursements for June? a. $ 85,000 b. $(10,000) c. $ 75,000 d. $ 95,000 Quick Check ? McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 92 The Cash Budget $50,000 16% 3/12 = $2,000 Borrowings on April 1 and repayment on June 30. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 93 The Budgeted Ine Statement Cash Budget Budgeted Ine Statement With interest expense from the cash budget, Royal can prepare the budgeted ine statement. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 94 Learning Objective 4(h) Prepare a budgeted ine statement. McGrawHill Education (Asia) Garrison, Noreen, Brewer, Cheng Yuen /Irwin Slide 95 The Budgeted Ine Statement R o y a l C o m p