Overview

Chapter Objectives

Identify purpose of master budgeting.
Prepare a sales budget, in units and sales dollars.
Prepare a production budget, in units.
Prepare a direct materials budget.
Prepare a direct labor budget.
Prepare a manufacturing overhead budget.
Prepare a selling and administrative budget.
Prepare a cash budget.
Prepare a budgeted income statement.
Prepare a budgeted balance sheet.

In this chapter, we will cover the complete process of master budgeting. This process starts with a sales budget, which is the foundation for the remaining budget schedules. At the end of this process, we will utilize the components of our budget to generate a cash budget, a budgeted income statement and a budgeted balance sheet. Almost all companies utilize a master budgeting cycle each year.

Readings

Read or Preview/Skim: Chapter 8, Master Budgeting in the McGraw Hill textbook.

e-textbook is accessible through McGraw Hill Connect

Slides

During class: Utilize the Lecture slide packet, attached below. We will review these key concepts and work problems together.

- Lecture slides, Chapter 8 (PDF)
- Lecture slides, Chapter 8 (PPT)
- Top Hat questions from class (not available until we complete lecture)
- Chapter 8 - Master Budget Practice Case Template (blank).docx

Homework and Cases

The following assignments are due:
- Chapter Preview: Chapter 8 Preview
- Chapter Homework: HW 8
- Team Exercise #5
- Project: Part 3

Resources

Textbook slides, Chapter 8: Additional problems (we will not work during class, but I recommend for extra practice) are available in the textbook slides.

McGraw Hill (and Connect) technical support is available by dialing 1-800-331-5094. The support team is fantastic and happy to help!

I am is happy to help. Ask questions during/before/after class or during student hours. Email contact if these options have been exhausted.

Reminders

Announcements