11 Edition: Mcgraw Hill/Irwin

11th Edition
Chapter 9
McGrawHill/Irwin
Copyright2006TheMcGrawHillCompanies,Inc.
Profit Planning
Chapter Nine
McGrawHill/Irwin
Copyright2006,TheMcGrawHillCompanies,Inc.
The Basic Framework of Budgeting

A budget is a detailed quantitative plan for
acquiring and using financial and other resources
over a specified forthcoming time period.
1. The act of preparing a budget is called
budgeting.
2. The use of budgets to control an
organizations activity is known as
budgetary control.
McGrawHill/Irwin
Planning and Control

Planning
Planning
involves
involves developing
developing
objectives
objectives and
and
preparing
preparing various
various
budgets
budgets to
to achieve
achieve
these
these objectives.
objectives.
McGrawHill/Irwin
Control
Control
involves
involves the
the steps
steps
taken
taken by
by
management
management that
that
attempt
attempt to
to ensure
ensure
the
the objectives
objectives are
are
attained.
attained.
Advantages of Budgeting
Define goal
and objectives
Communicate
plans
Think about and

plan for the future
Advantages
Coordinate
activities
Means of allocating
resources
Uncover potential
bottlenecks
McGrawHill/Irwin
Responsibility Accounting
Managers
Managers should
should be
be held
held responsible
responsible for
for those
those
items
items
and
and only
only those
those items
items
that
that
the
the manager
manager can
can actually
actually control
control
to
to aa significant
significant extent.
extent.
McGrawHill/Irwin
Choosing the Budget Period
Operating Budget
2003
2004
The annual operating budget

may be divided into quarterly
or monthly budgets.
McGrawHill/Irwin
2005
2006
A continuous budget is a 12month budget that rolls forward

one month (or quarter) as the
current month (or quarter) is
completed.
Self-Imposed Budget
Top M anagem ent
M id d le
M anagem ent
S u p e r v is o r
S u p e r v is o r
M id d le
M anagem ent
S u p e r v is o r
S u p e r v is o r
A budget is prepared with the full cooperation and

participation of managers at all levels. A participative
budget is also known as a self-imposed budget.
McGrawHill/Irwin
Advantages of Self-Imposed Budgets

1.
1. Individuals
Individuals at
at all
all levels
levels of
of the
the organization
organization are
are viewed
viewed
as
as members
members of
of the
the team
team whose
whose judgments
judgments are
are valued
valued
by
by top
top management.
management.
2.
2. Budget
Budget estimates
estimates prepared
prepared by
by front-line
front-line managers
managers are
are
often
often more
more accurate
accurate than
than estimates
estimates prepared
prepared by
by top
top
managers.
managers.
3.
3. Motivation
Motivation is
is generally
generally higher
higher when
when individuals
individuals
participate
participate in
in setting
setting their
their own
own goals
goals than
than when
when the
the
goals
goals are
are imposed
imposed from
from above.
above.
4.
4. A
A manager
manager who
who is
is not
not able
able to
to meet
meet aa budget
budget imposed
imposed
from
from above
above can
can claim
claim that
that itit was
was unrealistic.
unrealistic. SelfSelfimposed
imposed budgets
budgets eliminate
eliminate this
this excuse.
excuse.
McGrawHill/Irwin
Self-Imposed Budgets
Most companies do not rely exclusively upon
self-imposed budget in the sense that top
managers usually initiate the budget process
by issuing broad guidelines in terms of overall
profits or sales.
McGrawHill/Irwin
Human Factors in Budgeting

The
The success
success of
of budgeting
budgeting depends
depends upon
upon three
three
important
important factors:
factors:
1.
1. Top
Top management
management must
must be
be enthusiastic
enthusiastic and
and
committed
committed to
to the
the budget
budget process.
process.
2.
2. Top
Top management
management must
must not
not use
use the
the budget
budget to
to
pressure
pressure employees
employees or
or blame
blame them
them when
when
something
something goes
goes wrong.
wrong.
3.
3. Highly
Highly achievable
achievable budget
budget targets
targets are
are usually
usually
preferred
preferred when
when managers
managers are
are rewarded
rewarded based
based
on
on meeting
meeting budget
budget targets.
targets.
McGrawHill/Irwin
Zero Based Budgeting

A zero-based budget requires managers to
justify all budgeted expenditures, not just
changes in the budget from the prior year.
Most
Most managers
managers argue
argue that
that
zero-based
zero-based budgeting
budgeting is
is too
too
time
time consuming
consuming and
and costly
costly to
to
justify
justify on
on an
an annual
annual basis.
basis.
McGrawHill/Irwin
The Budget Committee

A
A standing
standing committee
committee responsible
responsible for
for
overall
overall policy
policy matters
matters relating
relating to
to the
the
budget
budget
coordinating
coordinating the
the preparation
preparation of
of the
the
budget
budget
McGrawHill/Irwin
The Master Budget: An Overview
Ending
Finished
Goods
Budget
Direct
Materials
Budget
Sales
Budget
Production
Budget
Selling and
Administrative
Budget
Direct
Labor
Budget
Manufacturing
Overhead
Budget
Cash
Budget
Budgeted Financial Statements

McGrawHill/Irwin
Budgeting Example
Royal
Royal Company
Company is
is preparing
preparing budgets
budgets for
for the
the
quarter
quarter ending
ending June
June 30.
30.
Budgeted
Budgeted sales
sales for
for the
the next
next five
five months
months are:
are:
April
April
May
May
June
June
July
July
August
August
20,000
20,000 units
units
50,000
50,000 units
units
30,000
30,000 units
units
25,000
25,000 units
units
15,000
15,000 units.
units.
The
The selling
selling price
price is
is $10
$10 per
per unit.
unit.
McGrawHill/Irwin
The Sales Budget

The individual months of April, May, and June are
summed to obtain the total projected sales in units
and dollars for the quarter ended June 30 th
McGrawHill/Irwin
Expected Cash Collections
All
All sales
sales are
are on
on account.
account.
Royals
Royals collection
collection pattern
pattern is:
is:
70%
70% collected
collected in
in the
the month
month of
of sale,
sale,
25%
25% collected
collected in
in the
the month
month following
following sale,
sale,
5%
5% uncollectible.
uncollectible.
The
The March
March 31
31 accounts
accounts receivable
receivable balance
balance of
of
$30,000
$30,000 will
will be
be collected
collected in
in full.
full.
McGrawHill/Irwin
McGrawHill/Irwin
From the Sales Budget for April.
McGrawHill/Irwin
From the Sales Budget for May.
McGrawHill/Irwin
Quick Check
What
What will
will be
be the
the total
total cash
cash collections
collections for
for the
the
quarter?
quarter?
a.
a. $700,000
$700,000
b.
b. $220,000
$220,000
c.
c. $190,000
$190,000
d.
d. $905,000
$905,000
McGrawHill/Irwin
Quick Check
What
What will
will be
be the
the total
total cash
cash collections
collections for
for the
the
quarter?
quarter?
a.
a. $700,000
$700,000
b.
b. $220,000
$220,000
c.
c. $190,000
$190,000
d.
d. $905,000
$905,000
McGrawHill/Irwin
McGrawHill/Irwin
The Production Budget
Sales
Budget
d
e
and
et
l
p
Expected
m
o
C
Cash
Collections
Production
Budget
Production must be adequate to meet budgeted

sales and provide for sufficient ending inventory.
McGrawHill/Irwin

The
The management
management at
at Royal
Royal Company
Company wants
wants
ending
ending inventory
inventory to
to be
be equal
equal to
to 20%
20% of
of the
the
following
following months
months budgeted
budgeted sales
sales in
in units.
units.
On
On March
March 31,
31, 4,000
4,000 units
units were
were on
on hand.
hand.
Lets
Lets prepare
prepare the
the production
production budget.
budget.
McGrawHill/Irwin
McGrawHill/Irwin
March 31
ending inventory
McGrawHill/Irwin
Quick Check
What
What is
is the
the required
required production
production for
for May?
May?
a.
a. 56,000
56,000 units
units
b.
b. 46,000
46,000 units
units
c.
c. 62,000
62,000 units
units
d.
d. 52,000
52,000 units
units
McGrawHill/Irwin
Quick Check
What
What is
is the
the required
required production
production for
for May?
May?
a.
a. 56,000
56,000 units
units
b.
b. 46,000
46,000 units
units
c.
c. 62,000
62,000 units
units
d.
d. 52,000
52,000 units
units
McGrawHill/Irwin
McGrawHill/Irwin
Assumed ending inventory.

McGrawHill/Irwin
The Direct Materials Budget

At
At Royal
Royal Company,
Company, five
five pounds
pounds of
of material
material
are
are required
required per
per unit
unit of
of product.
product.
Management
Management wants
wants materials
materials on
on hand
hand at
at
the
the end
end of
of each
each month
month equal
equal to
to 10%
10% of
of the
the
following
following months
months production.
production.
On
On March
March 31,
31, 13,000
13,000 pounds
pounds of
of material
material
are
are on
on hand.
hand. Material
Material cost
cost is
is $0.40
$0.40 per
per
pound.
pound.
Lets
Lets prepare
prepare the
the direct
direct materials
materials budget.
budget.
McGrawHill/Irwin
From production budget

McGrawHill/Irwin
McGrawHill/Irwin
March 31 inventory
10% of following months

production needs.
McGrawHill/Irwin
Calculate the materials to

by purchased in May.
Quick Check
How
How much
much materials
materials should
should be
be purchased
purchased in
in May?
May?
a.
a. 221,500
221,500 pounds
pounds
b.
b. 240,000
240,000 pounds
pounds
c.
c. 230,000
230,000 pounds
pounds
d.
d. 211,500
211,500 pounds
pounds
McGrawHill/Irwin
Quick Check
How
How much
much materials
materials should
should be
be purchased
purchased in
in May?
May?
a.
a. 221,500
221,500 pounds
pounds
b.
b. 240,000
240,000 pounds
pounds
c.
c. 230,000
230,000 pounds
pounds
d.
d. 211,500
211,500 pounds
pounds
McGrawHill/Irwin
McGrawHill/Irwin
Assumed ending inventory

McGrawHill/Irwin
Expected Cash Disbursement for Materials
Royal
Royal pays
pays $0.40
$0.40 per
per pound
pound for
for its
its materials.
materials.
One-half
One-half of
of aa months
months purchases
purchases is
is paid
paid for
for in
in
the
the month
month of
of purchase;
purchase; the
the other
other half
half is
is paid
paid
in
in the
the following
following month.
month.
The
The March
March 31
31 accounts
accounts payable
payable balance
balance is
is
$12,000.
$12,000.
Lets
Lets calculate
calculate expected
expected cash
cash disbursements.
disbursements.
McGrawHill/Irwin
McGrawHill/Irwin
Compute the expected cash

disbursements for materials
for the quarter.
140,000 lbs. $.40/lb. = $56,000
McGrawHill/Irwin
Quick Check
What
What are
are the
the total
total cash
cash disbursements
disbursements for
for the
the
quarter?
quarter?
a.
a. $185,000
$185,000
b.
b. $$ 68,000
68,000
c.
c. $$ 56,000
56,000
d.
d. $201,400
$201,400
McGrawHill/Irwin
Quick Check
What are the total cash disbursements for the
quarter?
a. $185,000
b. $ 68,000
c. $ 56,000
d. $201,400
McGrawHill/Irwin
McGrawHill/Irwin
The Direct Labor Budget

At
At Royal,
Royal, each
each unit
unit of
of product
product requires
requires 0.05
0.05 hours
hours (3
(3
minutes)
minutes) of
of direct
direct labor.
labor.
The
The Company
Company has
has aa no
no layoff
layoff policy
policy so
so all
all employees
employees
will
will be
be paid
paid for
for 40
40 hours
hours of
of work
work each
each week.
week.
In
In exchange
exchange for
for the
the no
no layoff
layoff policy,
policy, workers
workers agree
agree to
to aa
wage
wage rate
rate of
of $10
$10 per
per hour
hour regardless
regardless of
of the
the hours
hours
worked
worked (No
(No overtime
overtime pay).
pay).
For
For the
the next
next three
three months,
months, the
the direct
direct labor
labor workforce
workforce will
will
be
be paid
paid for
for aa minimum
minimum of
of 1,500
1,500 hours
hours per
per month.
month.
Lets
Lets prepare
prepare the
the direct
direct labor
labor budget.
budget.
McGrawHill/Irwin
From production budget
McGrawHill/Irwin
McGrawHill/Irwin
Greater
Greater of
of labor
labor hours
hours required
required
or
or labor
labor hours
hours guaranteed.
guaranteed.
McGrawHill/Irwin
McGrawHill/Irwin
Quick Check
What
What would
would be
be the
the total
total direct
direct labor
labor cost
cost for
for the
the
quarter
quarter ifif the
the company
company follows
follows its
its no
no lay-off
lay-off policy,
policy,
but
but pays
pays $15
$15 (time-and-a-half)
(time-and-a-half) for
for every
every hour
hour
worked
worked in
in excess
excess of
of 1,500
1,500 hours
hours in
in aa month?
month?
a.
a. $79,500
$79,500
b.
b. $64,500
$64,500
c.
c. $61,000
$61,000
d.
d. $57,000
$57,000
McGrawHill/Irwin
Quick Check
What
What would
would be
be the
the total
total direct
direct labor
labor cost
cost for
for the
the
quarter
quarter ifif the
the company
company follows
follows its
its no
no lay-off
lay-off policy,
policy,
but
but pays
pays $15
$15 (time-and-a-half)
(time-and-a-half) for
for every
every hour
hour
April in
May
June
Quarter
worked
worked in
in excess
excess of
of 1,500
1,500 hours
hours
in a
a month?
month?
Labor hours required 1,300 2,300
1,450
a.
a. $79,500
$79,500 Regular hours paid 1,500 1,500
1,500 4,500
800
800
b.
b. $64,500
$64,500 Overtime hours paid
c.
c. $61,000
$61,000 Total regular hours 4,500 $10 $ 45,000
Total overtime hours
800
$15 $ 12,000
d.
$57,000
d. $57,000
Total pay
McGrawHill/Irwin
$ 57,000
Manufacturing Overhead Budget

At
At Royal
Royal manufacturing
manufacturing overhead
overhead is
is applied
applied to
to units
units
of
of product
product on
on the
the basis
basis of
of direct
direct labor
labor hours.
hours.
The
The variable
variable manufacturing
overhead rate
rate is
is $20
$20 per
per
direct
direct labor
labor hour.
hour.
Fixed
Fixed manufacturing
overhead is
is $50,000
$50,000 per
per month
month
and
and includes
includes $20,000
$20,000 of
of noncash
noncash costs
costs (primarily
(primarily
depreciation
depreciation of
of plant
plant assets).
assets).
Lets
Lets prepare
prepare the
the manufacturing
overhead budget.
budget.
McGrawHill/Irwin
Direct Labor Budget

McGrawHill/Irwin
Total mfg. OH for quarter $251,000

= $49.70 per hour*
Total labor hours required 5,050
*rounded
McGrawHill/Irwin
Depreciation
Depreciation is
is aa noncash
noncash charge.
charge.
McGrawHill/Irwin
Ending Finished Goods Inventory Budget
Production costs per unit Quantity

Cost
Direct materials
5.00 lbs. $ 0.40
Direct labor
Manufacturing overhead
Total
2.00
Budgeted finished goods inventory

Ending inventory in units
Unit product cost
Ending finished goods inventory
Direct materials
budget and information
McGrawHill/Irwin

Cost
Direct materials
5.00 lbs. $ 0.40
Direct labor
0.05 hrs. $10.00
Total
2.00
0.50

Unit product cost
Direct labor budget
McGrawHill/Irwin

Cost
Direct materials
5.00 lbs. $ 0.40
Direct labor
0.05 hrs. $ 10.00
0.05 hrs. $ 49.70
$
Unit product cost
Total
2.00
0.50
2.49
4.99
4.99
?
Total mfg. OH for quarter $251,000

= $49.70 per hour*
Total labor hours required 5,050
McGrawHill/Irwin

Cost
Direct materials
5.00 lbs. $ 0.40
Direct labor
0.05 hrs. $10.00
0.05 hrs. $49.70
$
Unit product cost
Total
2.00
0.50
2.49
4.99
5,000
$ 4.99
$24,950
Production Budget
McGrawHill/Irwin
Selling and Administrative Expense Budget

At
At Royal,
Royal, the
the selling
selling and
and administrative
administrative expenses
expenses budget
budget is
is
divided
divided into
into variable
variable and
and fixed
fixed components.
components.
The
The variable
variable selling
selling and
and administrative
expenses are
are $0.50
$0.50
per
per unit
unit sold.
sold.
Fixed
Fixed selling
selling and
and administrative
expenses are
are $70,000
$70,000 per
per
month.
month.
The
The fixed
fixed selling
selling and
and administrative
expenses include
include
$10,000
$10,000 in
in costs
costs primarily
primarily depreciation
depreciation that
that are
are not
not cash
cash
outflows
outflows of
of the
the current
current month
month..
Lets
Lets prepare
prepare the
the companys
companys selling
selling and
and administrative
administrative
expense
expense budget.
budget.
McGrawHill/Irwin
Calculate the selling and administrative

cash expenses for the quarter.
McGrawHill/Irwin
Quick Check
What
What are
are the
the total
total cash
cash disbursements
disbursements for
for selling
selling
and
and administrative
expenses for
for the
the quarter?
quarter?
a.
a. $180,000
$180,000
b.
b. $230,000
$230,000
c.
c. $110,000
$110,000
d.
d. $$ 70,000
70,000
McGrawHill/Irwin
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/Irwin
McGrawHill/Irwin
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. Cash excess or deficiency
4. The financing section listing all borrowings,
repayments and interest
McGrawHill/Irwin
The Cash Budget

Royal:
Royal:
Maintains
Maintains aa 16%
16% open
open line
line of
of credit
credit for
for $75,000
$75,000
Maintains
Maintains aa minimum
minimum cash
cash balance
balance of
of $30,000
$30,000
Borrows
Borrows on
on the
the first
first day
day of
of the
the month
month and
and repays
repays
loans
loans on
on the
the last
last day
day of
of the
the month
month
Pays
Pays aa cash
cash dividend
dividend of
of $49,000
$49,000 in
in April
April
Purchases
Purchases $143,700
$143,700 of
of equipment
equipment in
in May
May and
and
$48,300
$48,300 in
in June
June paid
paid in
in cash
cash
Has
Has an
an April
April 11 cash
cash balance
balance of
of $40,000
$40,000
McGrawHill/Irwin
The Cash Budget
Schedule
Schedule of
of Expected
Expected
Cash
Cash Collections
Collections
McGrawHill/Irwin
The Cash Budget
Schedule
Schedule of
of Expected
Expected
Cash
Cash Disbursements
Disbursements
Direct Labor
Budget
Manufacturing
Overhead Budget
Selling and Administrative
Expense Budget
McGrawHill/Irwin
The Cash Budget
Because Royal maintains

a cash balance of $30,000,
the company must borrow
$50,000 on it line-of-credit.
McGrawHill/Irwin
The Cash Budget
Ending cash balance for April

is the beginning May balance.
McGrawHill/Irwin
The Cash Budget
McGrawHill/Irwin
Quick Check
What
What is
is the
the excess
excess (deficiency)
(deficiency) of
of cash
cash available
available
over
over disbursements
disbursements for
for June?
June?
a.
a. $$ 85,000
85,000
b.
b. $(10,000)
$(10,000)
c.
c. $$ 75,000
75,000
d.
d. $$ 95,000
95,000
McGrawHill/Irwin
Quick Check
What
What is
is the
the excess
excess (deficiency)
(deficiency) of
of cash
cash available
available
over
over disbursements
disbursements for
for June?
June?
a.
a. $$ 85,000
85,000
b.
b. $(10,000)
$(10,000)
c.
c. $$ 75,000
75,000
d.
d. $$ 95,000
95,000
McGrawHill/Irwin
The Cash Budget
$50,000 16% 3/12 = $2,000

Borrowings on April 1 and
repayment on June 30.
McGrawHill/Irwin
The Budgeted Income Statement
Cash
Budget
m
o
C
pl
ed
t
e
Budgeted
Income
Statement
After we complete the cash budget,

we can prepare the budgeted income
statement for Royal.
McGrawHill/Irwin
The Budgeted Income Statement
Royal Company
Budgeted Income Statement
For the Three Months Ended June 30
Sales (100,000 units @ $10)
Cost of goods sold (100,000 @ $4.99)
Gross margin
Selling and administrative expenses
Operating income
Interest expense
Net income
$ 1,000,000
499,000
501,000
260,000
241,000
2,000
$ 239,000
Sales
Sales Budget
Budget
Ending
Ending Finished
Finished
Goods
Goods Inventory
Inventory
Selling
Selling and
and
Administrative
Administrative
Expense
Expense Budget
Budget
Cash
Cash Budget
Budget
McGrawHill/Irwin
The Budgeted Balance Sheet

Royal
Royal reported
reported the
the following
following account
account
balances
balances prior
prior to
to preparing
preparing its
its budgeted
budgeted
financial
financial statements:
statements:
Land
Land -- $50,000
$50,000
Common
Common stock
stock -- $200,000
$200,000
Retained
Retained earnings
earnings -- $146,150
$146,150
Equipment
Equipment -- $175,000
$175,000
McGrawHill/Irwin
Royal Company
Budgeted Balance Sheet
June 30
Current assets
Cash
Accounts receivable
Raw materials inventory
Finished goods inventory
Total current assets
Property and equipment
Land
Equipment
Total property and equipment
Total assets
Accounts payable
Common stock
Retained earnings
Total liabilities and equities
McGrawHill/Irwin
43,000
75,000
4,600
24,950
147,550
50,000
367,000
417,000
$ 564,550
$
28,400
200,000
336,150
$ 564,550
25%
25% of
of June
June
sales
sales of
of
$300,000
$300,000
11,500
11,500 lbs.
lbs.
at
at $0.40/lb.
$0.40/lb.
5,000
5,000 units
units
at
at $4.99
$4.99 each
each
50%
50% of
of June
June
purchases
purchases
of
of $56,800
$56,800
Royal Company
Budgeted Balance Sheet
June 30
Current assets
Cash
Accounts receivable
Raw materials inventory
Finished goods inventory
Total current assets
Property and equipment
Land
Equipment
Total property and equipment
Total assets
Accounts payable
Common stock
Retained earnings
Total liabilities and equities
McGrawHill/Irwin
43,000
Beginning balance
75,000
Add: net income
4,600
Deduct: dividends
24,950
Ending balance
147,550
$146,150
239,000
(49,000)
$336,150
50,000
367,000
417,000
$ 564,550
$
28,400
200,000
336,150
$ 564,550
International Aspects of Budgeting

When a multinational company enters into the
budgeting process there are at least three
major problems that must be dealt with . . .
1. Fluctuations in foreign currency
exchange rates.
2. High inflation rates.
3. Local economic conditions and
governmental policies.
McGrawHill/Irwin
End of Chapter 9
McGrawHill/Irwin

11 Edition: Mcgraw Hill/Irwin

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11th Edition

The Basic Framework of Budgeting

Planning and Control

Think about and

Choosing the Budget Period

The annual operating budget

A continuous budget is a 12month budget that rolls forward

A budget is prepared with the full cooperation and

Advantages of Self-Imposed Budgets

Human Factors in Budgeting

Zero Based Budgeting

The Budget Committee

The Master Budget: An Overview

Budgeted Financial Statements

The Sales Budget

Expected Cash Collections

Expected Cash Collections

Expected Cash Collections

From the Sales Budget for April.

Expected Cash Collections

From the Sales Budget for May.

Expected Cash Collections

The Production Budget

Production must be adequate to meet budgeted

The Production Budget

The Production Budget

The Production Budget

The Production Budget

The Production Budget

Assumed ending inventory.

The Direct Materials Budget

The Direct Materials Budget

From production budget

The Direct Materials Budget

The Direct Materials Budget

10% of following months

Calculate the materials to

The Direct Materials Budget

The Direct Materials Budget

Assumed ending inventory

Expected Cash Disbursement for Materials

Expected Cash Disbursement for Materials

Expected Cash Disbursement for Materials

Compute the expected cash

Expected Cash Disbursement for Materials

The Direct Labor Budget

The Direct Labor Budget

From production budget

The Direct Labor Budget

The Direct Labor Budget

The Direct Labor Budget

Manufacturing Overhead Budget

Manufacturing Overhead Budget

Direct Labor Budget

Manufacturing Overhead Budget

Total mfg. OH for quarter $251,000

Manufacturing Overhead Budget

Ending Finished Goods Inventory Budget

Production costs per unit Quantity

Budgeted finished goods inventory

Ending Finished Goods Inventory Budget

Production costs per unit Quantity

Budgeted finished goods inventory