MGMT 30B Lecture Notes - Lecture 11: Direct Labor Cost, Accounts Payable
8 Jun 2016
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Lecture 12 february 13: developing a planning budget, components: Budgeted unit sales + desired ending finished goods inventory = Beginning finished goods inventory = required production. Required production (in units) x raw materials required per unit of finished goods = raw materials needed for production. + raw materials desired ending inventory = total raw materials needed. Raw materials beginning inventory = raw materials to be purchased. x unit cost of raw materials = cost of raw materials to be purchased. (a. 2. b) Prepare schedule of expected cash disbursements for raw materials (a. 2. b. i) Required production (in units) x direct labor required per unit (in hours) = total direct labor hours needed. Total direct labor hours needed x variable manufacturing overhead rate = variable manufacturing overhead. Non cash overhead expenses = cash disbursements for manufacturing overhead (a. 4. b) (a. 4. c) Pre-determined overhead rate = estimated total manufacturing overhead / estimated allocation base.
