ACCT 1A Lecture Notes - Lecture 13: Budget, Financial Statement, Comprehensive Income

• School: Irvine Valley College
• Department: Accounting
• Course: ACCT 1A
• Professor: Bradshaw

Document Summary

Budgets are formal documents that quantify an organisation"s plan for achieving its goals. Communication and coordination: a tangible means for communication and coordination; Control: evaluate performance based on a benchmark. Master budget: a comprehensive financial plan consisting of interrelated budgets. Operating: sales budget, purchases and expenses budget; Cash: cash receipts and cash payments budget; We construct budgets in the order: sales production & selling and admin direct materials, labour and overhead ending inventory cogs. We have rows: number of units, selling price and total sales revenue. We have rows: number of sales units, desired ending inventory, sum of get number of units needed, less beginning inventory, to get number of units produced. Then we consider the costs of production. Units to produce, cost of direct materials per unit, Multiply to get cost of production needs in dollar terms, Plus desired ending inventory of raw materials in dollar terms, To get total cost of direct materials needed,