会计学（第21版）课件：Budgeting

BudgetingAccounting,21stEditionWarrenReeveFess

Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.1. Describebudgeting,itsobjectives,anditsimpactonhumanbehavior.2. Describethebasicelementsofthebudgetprocess,thetwomajortypesofbudgeting,andtheuseofcomputersinbudgeting.3. Describethemasterbudgetforamanufacturingbusiness.4. Preparethebasicincomestatementbudgetsforamanufacturingbusiness.5. Preparebalancesheetbudgetsforamanufacturingbusiness.ObjectivesAfterstudyingthischapter,youshouldbeableto:NatureandObjectivesofBudgetingEstimatedportionofyourtotalmonthlyincomethatshouldbebudgetedFeedbackEstablishingspecificgoalsExecutingplanstoachievethegoalsPeriodicallycomparingactualresultstothegoalsObjectivesofBudgetingPLANNINGDIRECTINGCONTROLLINGNatureandObjectivesofBudgetingHumanBehaviorandBudgetingSettingbudgetgoalstootightlySettingbudgetgoalstoolooselySettingconflictingbudgetgoalsNatureandObjectivesofBudgetingNatureandObjectivesofBudgetingGoalconflictoccurswhenindividualself-interestdiffersfrombusinessobjectives.Astudent’squestion,“Willthisbeonthetest?”isevidenceofgoalconflict.ContinuousBudgetingOne-YearBudgetFeb.2006Mar.2006Apr.2006May2006June2006July2998Aug.2006Sep.2006Oct.2006Nov.2006Dec.2006Jan.2007DeleteonFebruary28ContinuousBudgetingOne-YearBudgetAddFebruary2007Mar.2006Apr.2006May2006June2006July2998Aug.2006Sep.2006Oct.2006Nov.2006Dec.2006Jan.2007Feb.2007StaticBudgetsDescription:

AbudgetthatdoesnotreflectpotentialchangesinvolumeoractivitylevelStrength:

Itissimple—allexpensesarebudgetedasfixedcostsWeakness: ItdoesnotreflectchangesinrevenuesandexpensesthatoccurasvolumeschangeTypicalusage:

ServiceorganizationsoradministrativedepartmentsofretailersandmanufacturersColterManufacturingCompanyAssemblyDepartmentBudgetFortheMonthEndingJuly31,2006

Directlabor $40,000 ElectricPower 5,000 Supervisorsalaries 15,000 Totaldepartmentcosts $60,000

StaticBudgetsFlexibleBudgetsDescription:

AbudgetthatshowsrevenuesandexpensesforavarietyofvolumesoractivitylevelsStrength:

ProvidesinformationneededtoanalyzetheimpactofvolumechangesonactualoperatingresultsWeakness:

Requiresgreaterresearchintocosts—mustdifferentiatefixedandvariablecostsTypicalusage: OperationaldepartmentsofretailersandmanufacturerswhosecostschangewithsalesandproductionColterManufacturingCompanyAssemblyDepartmentBudgetFortheMonthEndingJuly31,2006Unitsofproduction 8,000 9,000 10,000Variablecost: Directlabor $40,000 $45,000 $50,000 Electricpower 4,000 4,500 5,000 Totalvariablecost $44,000 $49,500 $55,000Costperunitis$5.50atalllevelsofactivityVariablecost: Directlabor $40,000 $45,000 $50,000 Electricpower 4,000 4,500 5,000 Totalvariablecost $44,000 $49,500 $55,000Fixedcost: Electricpower $1,000 $1,000 $1,000 Supervisorsalaries 15,000 15,000 15,000 Totalfixedcost $16,000 $16,000 $16,000Unitsofproduction 8,000 9,000 10,000ColterManufacturingCompanyAssemblyDepartmentBudgetFortheMonthEndingJuly31,2006Unitsofproduction 8,000 9,000 10,000Variablecost: Directlabor $40,000 $45,000 $50,000 Electricpower 4,000 4,500 5,000 Totalvariablecost $44,000 $49,500 $55,000Fixedcost: Electricpower $1,000 $1,000 $1,000 Supervisorsalaries 15,000 15,000 15,000 Totalfixedcost $16,000 $16,000 $16,000Totaldepartmentcosts $60,000 $65,500 $71,000ColterManufacturingCompanyAssemblyDepartmentBudgetFortheMonthEndingJuly31,2006StaticandFlexibleBudgetsStaticBudgetActualResultsOverbudget

$60,000

$72,0008,000unitsActualResults$60,000$72,0009,000units$65,50010,000units$71,000OverbudgetFlexibleBudgetStaticandFlexibleBudgetsMasterBudgetBudgetedIncomeStatementSalesbudgetCostofgoodssoldbudget: Productionbudget Directmaterialspurchases budget DirectlaborcostbudgetSellingandadministrative expensebudgetBudgetedBalanceSheetCashbudgetCapitalexpenditure budgetIncomeStatementBudgets

SalesBudgetProductionBudget

Expectedunitsofsales+ Desiredunitsinendinginventory– Estimatedunitsinbeginninginventory TotalunitstobeproducedProductionBudgetDirectMaterialsPurchasesBudget

Materialsneededforproduction+ Desiredendingmaterialsinventory– Est.beginningmaterialsinventory Directmaterialstobepurchased

SalesBudgetProductionBudgetDirectMaterialsPurchasesBudgetDirectLaborCostBudgetFactoryOverheadCostBudgetCostofGoodsSoldBudgetSelling&AdministrativeExpensesBudget

SalesBudgetEliteAccessoriesInc.SalesBudgetFortheYearEndingDecember31,2006Wallet: East……………….. 287,000 $12.00 $3,444,000 West………………. 241,000 12.00 2,892,000 Total……………. 528,000 $6,336,000Handbag: East……………….. 156,400 $25.00 $3,910,000 West………………. 123,600 25.00 3,090,000 Total……………. 280,000 $7,000,000TotalrevenuefromSales……………….. $13,336,000 UnitSales UnitSelling TotalProductandRegion Volume Price SalesEliteAccessoriesInc.ProductionBudgetFortheYearEndingDecember31,2006Expectedunitstobesold 528,000 280,000Fromsalesbudget Units Wallet HandbagEliteAccessoriesInc.ProductionBudgetFortheYearEndingDecember31,2006Expectedunitstobesold………….528,000 280,000Plusdesiredendinginventory, December31,2006……………. 80,000

60,000Total 608,000 340,000 Units Wallet HandbagEliteAccessoriesInc.ProductionBudgetFortheYearEndingDecember31,2006Expectedunitstobesold…………. 528,000 280,000Plusdesiredendinginventory, December31,2006……………. 80,000

60,000Total………………. 608,000 340,000Lessestimatedbeginninginventory, January1,2006…. 88,000

48,000Totalunitstobeproduced………… 520,000 292,000 Units Wallet HandbagEliteAccessoriesInc.DirectMaterialsPurchasesBudgetFortheYearEndingDecember31,2006DirectMaterialsLeatherLiningTotalSquareyardsrequiredforproduction: Wallet(NoteA)….. 156,000 52,000

NoteA:Leather:520,000unitsx0.30sq.yd.perunit=156,000sq.yds.

Lining:520,000unitsx0.10sq.yd.Perunit=52,000sq.yds.Squareyardsrequiredforproduction: Wallet

(NoteA)……..……..…….. 156,000 52,000 Handbag(NoteB)……………….. 365,000 146,000NoteB:Leather:292,000unitsx1.25sq.yd.perunit=365,000sq.yds.

Lining:292,000unitsx0.50sq.yd.Perunit=146,000sq.yds.DirectMaterialsLeatherLiningTotalEliteAccessoriesInc.DirectMaterialsPurchasesBudgetFortheYearEndingDecember31,2006Squareyardsrequiredforproduction: Wallet

(NoteA)……....………….. 156,000 52,000 Handbag(NoteB).………………. 365,000 146,000Plusdesiredinventory,Dec.31,2006 20,000

12,000 Total……………… 541,000 210,000DirectMaterialsLeatherLiningTotalEliteAccessoriesInc.DirectMaterialsPurchasesBudgetFortheYearEndingDecember31,2006Squareyardsrequiredforproduction: Wallet(NoteA)…. 156,000 52,000 Handbag(NoteB)………………. 365,000 146,000Plusdesiredinventory,Dec.31,2006 20,000

12,000 Total……………… 541,000 210,000Lessestimatedinventory,Jan.1,2006 18,000

15,000 Totalsquareyardstobeproduced.. 523,000 195,000DirectMaterialsLeatherLiningTotalEliteAccessoriesInc.DirectMaterialsPurchasesBudgetFortheYearEndingDecember31,2006Squareyardsrequiredforproduction: Wallet(NoteA)….. 156,000 52,000 Handbag(NoteB).………………. 365,000 146,000Plusdesiredinventory,Dec.31,2006 20,000

12,000 Total……………… 541,000 210,000Lessestimatedinventory,Jan.1,2006 18,000

15,000 Totalsquareyardstobeproduced.. 523,000 195,000Unitprice(persquareyard)…………. x$4.50

x$1.20Totaldirectmaterialstobepurchased. $2,353,500 $234,000 $2,587,500DirectMaterialsLeatherLiningTotalEliteAccessoriesInc.DirectMaterialsPurchasesBudgetFortheYearEndingDecember31,2006EliteAccessoriesInc.DirectLaborCostBudgetFortheYearEndingDecember31,2006CuttingSewingTotalNoteA:CuttingDepartment:520,000unitsx0.10hr.perunit=52,000hrs. SewingDepartment:520,000unitsx0.25hr.perunit=130,000hrs.Hoursrequiredforproduction: Wallet(NoteA)………….

52,000 130,000

CuttingSewingTotalNoteA:CuttingDepartment:520,000unitsx0.10hr.perunit=52,000hrs. SewingDepartment:520,000unitsx0.25hr.perunit=130,000hrs.Hoursrequiredforproduction: Wallet(NoteA)………….

52,000 130,000 Handbag(NoteB)………..

43,800 116,800

.NoteB:CuttingDepartment:292,000unitsx0.15hr.perunit=43,800hrs. SewingDepartment:292,000unitsx0.40hr.perunit=116,800hrsEliteAccessoriesInc.DirectLaborCostBudgetFortheYearEndingDecember31,2006CuttingSewingTotalHoursrequiredforproduction: Wallet(NoteA)………….

52,000 130,000 Handbag(NoteB)………..

43,800

116,800 Total……... 95,800 246,800NoteA:CuttingDepartment:520,000unitsx0.10hr.perunit=52,000hrs. SewingDepartment:520,000unitsx0.25hr.perunit=130,000hrs..NoteB:CuttingDepartment:520,000unitsx0.15hr.perunit=43,800hrs. SewingDepartment:520,000unitsx0.40hr.perunit=116,800hrsEliteAccessoriesInc.DirectLaborCostBudgetFortheYearEndingDecember31,2006CuttingSewingTotalHoursrequiredforproduction: Wallet(NoteA)………….

52,000 130,000 Handbag(NoteB)………..

43,800

116,800 Total……... 95,800 246,800Hourlyrate…… x$12.00

x$15.00Totaldirectlaborcost………… $1,149,600 $3,702,000 $4,851,600 NoteA:CuttingDepartment:520,000unitsx0.10hr.perunit=52,000hrs. SewingDepartment:520,000unitsx0.25hr.perunit=130,000hrs.NoteB:CuttingDepartment:520,000unitsx0.15hr.perunit=43,800hrs. SewingDepartment:520,000unitsx0.40hr.perunit=116,800hrsEliteAccessoriesInc.DirectLaborCostBudgetFortheYearEndingDecember31,2006EliteAccessoriesInc.FactoryOverheadCostBudgetFortheYearEndingDecember31,2006Indirectfactorywages……... $732,800Supervisorysalaries………... 360,000Powerandlight…………….. 306,000Depreciationofplantandequipment………. 288,000Indirectmaterials…………… 182,800Maintenance………………... 140,280Insuranceandpropertytaxes………………. 79,200Totalfactoryoverheadcost………………... $2,089,080EliteAccessoriesInc.CostofGoodsSoldBudgetFortheYearEndingDecember31,2006NoteA: Leather: 18,000sq.yds.x$4.50persq.yd $81,000 Lining: 15,000sq.yds.x$1.20persq.yd

18,000 Directmaterials

inventory, January1,2006 $99,000

Finishedgoodsinventory,January1,2006….. $1,095,600Workinprocessinventory,January1,2006… $214,400Directmaterials: Directmaterialsinventory,January1,2006

(NoteA)…………………. $99,000Finishedgoodsinventory,January1,2006….. $1,095,600Workinprocessinventory,January1,2006… $214,400Directmaterials: Directmaterialsinventory,January1,2006

(NoteA)…………………. $99,000NoteB: Leather: 20,000sq.yds.x$4.50persq.yd $90,000 Lining: 12,000sq.yds.x$1.20persq.yd 14,400 Directmaterialsinventory,December31,2006 $104,400

EliteAccessoriesInc.CostofGoodsSoldBudgetFortheYearEndingDecember31,2006Finishedgoodsinventory,January1,2006…. $1,095,600Workinprocessinventory,January1,2006... $214,400Directmaterials: Directmaterialsinventory,January1,2006

(NoteA)…………………. $99,000 Directmaterialspurchases(Slide3)……..

2,587,500 Costofdirectmaterialsavailableforuse…. $2,686,500 Lessdirectmaterialsinventory, December31,2006(NoteB)……………. 104,400

Costofdirectmaterialsplacedinproduction $2,582,100Directlabor(Slide35)……….

4,851,600Factoryoverhead(Slide36)….. 2,089,080Totalmanufacturingcosts……. 9,522,780Totalworkinprocessduringperiod…………. $9,737,180

EliteAccessoriesInc.CostofGoodsSoldBudgetFortheYearEndingDecember31,2006Lessworkinprocessinventory,December31,2006 220,000Costofgoodsmanufactured………... 9,517,180Costoffinishedgoodsavailableforsale…………... $10,612,780Lessfinishedgoodsinventory,December31,2006.. 1,565,000Costofgoodssold………………….. $9,047,780

Finishedgoodsinventory,January1,2006………... $1,095,600Workinprocessinventory,January1,2006……….. $214,500Totalmanufacturingcosts………….. 9,522,780Totalworkinprocessduringperiod……………….. $9,737,180EliteAccessoriesInc.CostofGoodsSoldBudgetFortheYearEndingDecember31,2006EliteAccessoriesInc.SellingandAdministrativeExpensesBudgetFortheYearEndingDecember31,2006Sellingexpenses: Salessalariesexpense…………. $715,000 Advertisingexpense…………... 360,000 Travelexpense…………………. 115,000 Totalsellingexpenses………... $1,190,000Administrativeexpenses: Officers’salariesexpense………. $360,000 Officesalariesexpense…………. 258,000 Officerentexpense……………... 34,500 Officesuppliesexpense…………. 17,500 Miscellaneousadministrativeexpense………….. 25,000 Totaladministrativeexpenses… 695,000Totalsellingandadministrativeexpenses………… $1,885,000Revenuefromsales(slide23) $13,336,000Costofgoodssold(slide40)

9,047,780Grossprofit $4,288,220Selling&administrativeexpenses: Sellingexpenses(slide41) $1,190,000 Administrativeexpenses(slide41)

695,000 Totalsell.&Admin.Expenses 1,885,000Incomefromoperations $2,403,220Otherincome: Interestrevenue $98,000Otherexpense: Interestexpense 90,000

8,000Incomebeforeincometax $2,411,220Incometax 600,000Netincome $1,811,220EliteAccessoriesInc.BudgetedIncomeStatementFortheYearEndingDecember31,2006BudgetedBalanceSheetThecashbudgetisoneofthemostimportantelementsofthebudgetedbalancesheet.We’llbeginwithascheduleofcollectionfromsales.Receiptsfromcashsales: Cashsales(10%)(see NoteA)……... $108,000 $124,000 $97,000 January February MarchNoteA: $108,000=$1,080,000x10% $124,000=$1,240,000x10% $97,000=$970,000x10%EliteAccessoriesInc.ScheduleofCollectionsfromSalesFortheThreeMonthsEndingMarch31,2006Receiptsfromcashsales: Cashsales(10%)(see NoteA)……... $108,000 $124,000 $97,000Receiptsfromsalesonaccount: Collectionsfrompriormonth’s sales(40%)(seeNoteB)……. $370,000 $388,800 $446,400 January February MarchNoteB: $370,000,givenasJanuary1,2006Accounts Receivablebalance $388,800=$1,080,000x90%x40% $446,400=$1,240,000x90%x40%EliteAccessoriesInc.ScheduleofCollectionsfromSalesFortheThreeMonthsEndingMarch31,2006Receiptsfromcashsales: Cashsales(10%)(see NoteA)……... $108,000 $124,000 $97,000Receiptsfromsalesonaccount: Collectionsfrompriormonth’s sales(40%)(seeNoteB)……. $370,000 $388,800 $446,400 Collectionsfromcurrent month’ssales(60%)(seeNote C)…………… 583,200

669,600

523,800 January February MarchNoteC: $583,200=$1,080,000x90%x60% $669,600=$1,240,000x90%x60% $523,800=$970,000x90%x60%EliteAccessoriesInc.ScheduleofCollectionsfromSalesFortheThreeMonthsEndingMarch31,2006Receiptsfromcashsales: Cashsales(10%)(see NoteA)……... $108,000 $124,000 $97,000Receiptsfromsalesonaccount: Collectionsfrompriormonth’s sales(40%)(seeNoteB)……. $370,000 $388,800 $446,400 Collectionsfromcurrent month’ssales(60%)(seeNote C)…………… 583,200

669,600

523,800Totalreceiptsfromsaleson account……... $953,200 $1,058,400 $970,200 January February MarchEliteAccessoriesInc.ScheduleofCollectionsfromSalesFortheThreeMonthsEndingMarch31,2006Paymentofpriormonth’s manufacturingcosts(25%) (seeNoteA)… $190,000 $204,000 $189,000 January February MarchEliteAccessoriesInc.ScheduleofPaymentsforManufacturingCostsFortheThreeMonthsEndingMarch31,2006NoteA: $190,000,givenasJanuary1,2006Accounts Payablebalance $204,000=($840,000–$24,000)x25% $189,000=($780,000–$24,000)x75%Paymentofpriormonth’s manufacturingcosts(25%) (seeNoteA)… $190,000 $204,000 $189,000Paymentofcurrentmonth’s manufacturingcosts(75%)

(seeNoteB)…. 612,000

567,000

591,000

January February MarchNoteB: $612,000=($840,000–$24,000)x75% $567,000=($780,000–$24,000)x75% $591,000=($812,000–$24,000)x75%EliteAccessoriesInc.ScheduleofPaymentsforManufacturingCostsFortheThreeMonthsEndingMarch31,2006Paymentofpriormonth’s manufacturingcosts(25%) (seeNoteA)… $190,000 $204,000 $189,000Paymentofcurrentmonth’s manufacturingcosts(75%)

(seeNoteB)…. 612,000

567,000

591,000 Totalpayments………………. $802,000 $771,000 $780,000

January February MarchEliteAccessoriesInc.ScheduleofPaymentsforManufacturingCostsFortheThreeMonthsEndingMarch31,2006Estimatedcashreceipts: Cashsales(Slide45)………….. $108,000 $124,000 $97,000 Collectionsofaccounts receivable(Slide48)………... 953,200 1,058,400 970,200 Interestrevenue………………... —

—

24,500Totalcashreceipts……………. $1,061,200

$1,182,400

$1,091,700EliteAccessoriesInc.CashBudgetFortheThreeMonthsEndingMarch31,2006January February MarchEstimatedcashreceipts: Cashsales(Slide45)………….. $108,000 $124,000 $97,000 Collectionsofaccounts receivable(Slide48)………... 953,200