Akmen

Planning and Control Framework
Setting Organizational
Objectives
Identifying Opportunities
and/or Problems
Selecting Course of
Action and Allocating
Resources
Evaluating Accomplishments
of Organizational
Objectives
Purposes of Budgeting Systems

Planning
Budget 
a detailed plan, Facilitating
expressed in Communication and
Coordination
quantitative terms, 
that specifies how Allocating Resources
resources will be 
Controlling Profit and
acquired and used Operations
during a specified 
Evaluating Performance
period of time. and Providing Incentives
Advantages of Budgets
Compels managers
to think ahead
Aids managers in coordinating

their efforts
Providing information of resource for the

decision making (corectional decision)
Provides definite expectations that are the
best framework to evaluate performance
Types of Budgets
Strategic Plan Long-Range Plan
Capital Budget Master Budget
Capital Budget
Strategic Plan

Rencana strategis, mengidentifikasi strategi-
strategi untuk aktivitas dan operasi di masa
depan, setidaknya lima tahun ke depan.

Strategi umum diterjemahkan dalam tujuan jangka
panjang dan jangka pendek yang membentuk dasar
anggaran.
Long-Range Plan

The strategic plan leads to long-range planning,
which produces forecasted financial statements
for five- to ten-year periods.
Capital budgets with acquisitions
that normally cover several years.
Long Range Budgets
Continuous or
Rolling Budget
2010 2011 2012 2013
This budget is usually a twelve-month

budget that rolls forward one month
as the current month is completed.
Capital Budget
Long-range plans…
adalah anggaran yang menunjukkan rencana
jangka panjang dan pembelanjaan atas aset tetap
seperti pembangunan/pembelian gedung,
peralatan, kendaraan, perabot, dan investasi
jangka panjang lainnya.
Master Budget (anggaran induk)
Sales
Rencana keuangan
yang komprehensif
utk keseluruhan
Production
organisasi yang
terdiri atas berbagai Distribution
anggaran
individual.
Finance
Main Components of Master Budget….
Operating Budget Financial Budget

Preparation of a Master Budget for a Retail Organization
Sales Budget
Purchases Budget
Operating Selling and
Budgets Cost of Goods Administrative
Sold Budget Expense Budget
Budgeted
Income Statement
Budgeted
Cash Budget
Financial Balance Sheet
Budgets
Capital
Expenditures Budget
Preparation of a Master Budget for a
Service Organization
Service Revenue
Operating Services Selling and

Budgets Labor Budget Overhead Administrative
Budget Expense Budget
Budgeted
Income Statement
Budgeted
Cash Budget Balance
Financial Sheet
Budgets
Capital
Expenditures Budget
Components of Master Budget
Inventory
Budget
____ ____
____ ____
____ ____
____ ____
____ ____
Sales Purchases Cost of Operating Budgeted

Budget Budget Goods Sold Expenses Income
____ ____ ____ ____ Budget Budget Statement
____ ____ ____ ____ ____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____ ____ ____ ____ ____
describe of activities to yield

Operating Budget earnings (sale, produce,
finished goods), so that end
result from operating budget

loss/profit proforma
itemizing cash
Components of Master Budget
flows (in cash
budget) and also
the financial
position in
Cash general posed

Budget balance sheet
_____ _____ proforma
_____ _____
Capital _____ _____
Budget _____ _____
_____ _____ _____ _____
_____ _____
_____ _____ Financial
_____ _____ Budget
_____ _____ Budgeted
Balance
Sheet
_____ _____
_____ _____
_____ _____
_____ _____
_____ _____
Budgeting and the Management Cycle
•Relate the organization’s long-term
goals to its short-term activities
•Distribute resources and workloads
•Communicate responsibilities
•Select performance measures
•Set goals for bonuses and rewards
• Communicate budget information

• Provide continuous feedback
• Calculate variances
• Evaluate performance
• Determine timeliness • Communicate expectations
• Create solutions for • Challenge & motivate others
continuous improvement • Coordinate activities
• Recognize problems
Let’s produce the Master Budget…
for Breakers, Inc.
Detail
Budget
Detail
Budget
Detail
Production
Budget
Master
Budget
Covering all
phases of
a company’s
operations.
Sales Budget
Breakers, Inc. is preparing budgets for the
quarter ending June 30.
Budgeted sales for the next five months
are:
April 20,000 units
May 50,000 units
June 30,000 units
July 25,000 units
August 15,000 units.
The selling price is $10 per unit.
Sales Budget
April May June Quarter
Budgeted
sales (units) 20,000 50,000 30,000 100,000
Selling price
per unit $ 10 $ 10 $ 10 $ 10
Total
Revenue $200,000 $500,000 $300,000 $ 1,000,000
Production Budget
Production Budget
Sales Production
Budget Budget
Production must be adequate to meet budgeted

sales and provide for sufficient ending inventory.
Production Budget
The management of Breakers, Inc. wants
ending inventory to be equal to 20% of
the following month’s budgeted sales in
units.
st
On March 31 , 4,000 units were on hand.
Let’s prepare the production
Production Budget
budget.
Production Budget
Sales in units 20,000
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
From sales
budget
Production Budget
Add: desired May sales 50,000 units
end. inventory 10,000 Desired percent 20%
Total needed 30,000 Desired inventory 10,000 units
Less: beg.
inventory
Units to be
started
Production Budget
Add: desired
end. inventory 10,000
Total needed 30,000
Less: beg.
inventory 4,000
Units to be
started 26,000
March 31
ending inventory
Production Budget
Sales in units 20,000 50,000
Add: desired
end. inventory 10,000 6,000
Total needed 30,000 56,000
Less: beg.
inventory 4,000 10,000
Units to be
started 26,000 46,000
Production Budget
Sales in units 20,000 50,000 30,000 100,000
Add: desired
end. inventory 10,000 6,000 5,000 5,000
Total needed 30,000 56,000 35,000 105,000
Less: beg.
inventory 4,000 10,000 6,000 4,000
Units to be
started 26,000 46,000 29,000 101,000
Direct-Material Budget
• At Breakers, five pounds of material are
required per unit of product.
• Management wants materials on hand at
the end of each month equal to 10% of the
following month’s production.
• On March 31, 13,000 pounds of material are
on hand. Material cost $0.40 per pound.
Let’s prepare the direct materials budget.

Production in units 26,000 46,000 29,000 101,000
Materials per unit
Production needs
Add: desired
ending inventory
Total needed
Less: beginning
inventory
Materials to be
purchased
From our
production
budget
Production in units 26,000 46,000
Materials per unit 5 5
Production needs 130,000 230,000
Add: desired
ending inventory 23,000
Total needed 153,000
Less: beginning
inventory
Materials to
purchased
10% of the following

month’s production
Materials per unit 5 5 5 5
Production needs 130,000 230,000 145,000 505,000
Add: desired
ending inventory 23,000
Total needed 153,000
Less: beginning
inventory 13,000
Materials to be
purchased 140,000
March 31
inventory
Materials per unit 5 5 5 5
Production needs 130,000 230,000 145,000 505,000
Add: desired
ending inventory 23,000 14,500 11,500 11,500
Total needed 153,000 244,500 156,500 516,500
Less: beginning
inventory 13,000 23,000 14,500 13,000
Materials to be
purchased 140,000 221,500 142,000 503,500
July Production
Sales in units
Productiondingunits
April 25,000 26,000
May 46,000
June 29,000
Quarter
Add: desired e inventory 3,000 101,000
Total units needed 5 28,000 5 5 5
Materials per unit
Less: beginning inventory 130,000 5,000
Production needs 230,000 145,000 505,000
Production in units 23,000
Add: desired
ending inventory 23,000 14,500 11,500 11,500
Total needed 153,000 244,500 156,500 516,500
Less: beginning June Ending Inventory
inventory 13,000
14,500
23,000
13,000
July production in units 23,000
Materials to be
Materials per unit 221,500 5
purchased 140,000 142,000
503,500
Total units needed 115,000
Inventory percentage 10%
June desired ending inventory 11,500
Direct-Labor Budget
• At Breakers, each unit of product requires 0.1 hours of
direct labor.
• The Company has a ”no layoff” policy so all employees
will be paid for 40 hours of work each week.
• In exchange for the ”no layoff” policy, workers agreed to
a wage rate of $8 per hour regardless of the hours
worked (No overtime pay).
• For the next three months, the direct labor workforce will
be paid for a minimum of 3,000 hours per month.
Let’s prepare the direct labor budget.
Direct-Labor Budget
Direct labor hours
Labor hours required
Guaranteed labor
hours
Labor hours paid
Wage rate
Total direct labot cost
From our
production
budget
Direct-Labor Budget
Direct labor hours 0.10 0.10 0.10 0.10
Labor hours required 2,600 4,600 2,900 10,100
Guaranteed labor
hours
Labor hours paid
Wage rate
Direct-Labor Budget
Guaranteed labor
hours 3,000 3,000 3,000
Labor hours paid 3,000 4,600 3,000 10,600
Wage rate
This is the greater of

labor hours required or
labor hours guaranteed.
Direct-Labor Budget
Guaranteed labor
hours 3,000 3,000 3,000
Labor hours paid 3,000 4,600 3,000 10,600
Wage rate $ 8 $ 8 $ 8 $ 8
Total direct labot cost $ 24,000 $ 36,800 $ 24,000 $ 84,800
Total DLH Q2
Overhead Budget
Here is Breakers ’ Overhead Budget for the
April quarter. June Quarter

May
Indirect labor $ 17,500 $ 26,500 $ 17,900 $ 61,900
Indirect material 7,000 12,600 8,600 28,200
Utilities 4,200 8,400 5,200 17,800
Rent 13,300 13,300 13,300 39,900
Insurance 5,800 5,800 5,800 17,400
Maintenance 8,200 9,400 8,200 25,800
$ 56,000 $ 76,000 $ 59,000 $ 191,000
Total MOH Q2
Selling and Administrative
Expense Budget
• At Breakers, variable selling and
administrative expenses are $0.50 per unit
sold.
• Fixed selling and administrative expenses
are $70,000 per month.
• The $70,000 fixed expenses include
$10,000 in depreciation expense that does
not require a cash outflows for the month.
Expense Budget
Sales in units 20,000 50,000 30,000 100,000
Variable S&A rate
Variable expense
Fixed S&A
expense
Total expense
Less: noncash
expenses
Cash
disbursements
From our
Sales budget
Expense Budget
Sales in units 20,000 50,000 30,000 100,000
Variable S&A rate $ 0.50 $ 0.50 $ 0.50 $ 0.50
Variable expense $ 10,000 $ 25,000 $ 15,000 $ 50,000
Fixed S&A
expense 70,000 70,000 70,000 210,000
Total expense 80,000 95,000 85,000 260,000
Less: noncash
expenses
Cash
disbursements
Expense Budget
Sales in units 20,000 50,000 30,000 100,000
Variable S&A rate $ 0.50 $ 0.50 $ 0.50 $ 0.50
Variable expense $ 10,000 $ 25,000 $ 15,000 $ 50,000
Fixed S&A
expense 70,000 70,000 70,000 210,000
Total expense 80,000 95,000 85,000 260,000
Less: noncash
expenses 10,000 10,000 10,000 30,000
Cash
disbursements $ 70,000 $ 85,000 $ 75,000 $ 230,000
Cash Receipts Budget
• At Breakers, all sales are on account.
• The company’s collection pattern is:
70% collected in the month of sale,
25% collected in the month following sale,
5% is uncollected.
• The March 31 accounts receivable balance
of $30,000 will be collected in full.
Accounts rec. - 3/31 $ 30,000 $ 30,000
April sales
70% x $200,000 140,000 140,000
25% x $200,000 $ 50,000 50,000
Total cash collections $ 170,000

Accounts rec. - 3/31 $ 30,000 $ 30,000
April sales
70% x $200,000 140,000 140,000
25% x $200,000 $ 50,000 50,000
May sales
70% x $500,000 350,000 350,000
25% x $500,000 $ 125,000 125,000
June sales
70% x $300,000 210,000 210,000
Total cash collections $ 170,000 $ 400,000 $ 335,000 $ 905,000
Back to Cash Dishbursment….

Cash Disbursement Budget
• Breakers pays $0.40 per pound for its
materials.
• One-half of a month’s purchases are paid for
in the month of purchase; the other half is
paid in the following month.
• No discounts are available.
• The March 31 accounts payable balance is
$12,000.
Accounts pay. 3/31 $ 12,000 $ 12,000
April purchases
50% x $56,000 28,000 28,000
50% x $56,000 $ 28,000 28,000
Total cash payments

for materials $ 40,000
140,000 lbs. × $.40/lb. = $56,000

Accounts pay. 3/31 $ 12,000 $ 12,000
April purchases
50% x $56,000 28,000 28,000
50% x $56,000 $ 28,000 28,000
May purchases
50% x $88,600 44,300 44,300
50% x $88,600 $ 44,300 44,300
June purchases
50% x $56,800 28,400 28,400
Total cash payments
for materials $ 40,000 $ 72,300 $ 72,700 $ 185,000
Continued
Breakers:
– Maintains a 12% open line of credit for $75,000.
– Maintains a minimum cash balance of $30,000.
– Borrows and repays loans on the last day of
the month.
– Pays a cash dividend of $25,000 in April.
– Purchases $143,700 of equipment in May
and $48,300 in June paid in cash.
– Has an April 1 cash balance of $40,000.
Continued
Beginning cash balance $ 40,000
Add: cash collections 170,000
Total cash available 210,000
Less: disbursements
Materials
Direct labor
Mfg. overhead From our Cash
Selling and admin. Receipts Budget
Equipment purchase
Dividends
Total disbursements
Excess (deficiency) of
Cash available over
disbursements
Continued
Less: disbursements
Materials 40,000
Direct labor
Mfg. overhead
Selling and admin.
Equipment purchase
Dividends
Total disbursements From our Cash
Excess (deficiency) of Disbursements
Cash available over Budget
disbursements
Continued
Less: disbursements
Materials 40,000
Direct labor 24,000
Mfg. overhead
Selling and admin.
Equipment purchase
Dividends
Total disbursements From our Direct
Excess (deficiency) of Labor Budget
Cash available over
disbursements
Continued
Less: disbursements
Materials 40,000
Direct labor 24,000
From our
Mfg. overhead 56,000
Overhead Budget
Selling and admin.
Equipment purchase
Dividends
Total disbursements
Cash available over
disbursements
Continued
Less: disbursements
Materials 40,000
Direct labor 24,000
Mfg. overhead 56,000 From our
Selling and admin. 70,000 Selling and Administrative
Equipment purchase Expense Budget
Dividends
Total disbursements
Cash available over
disbursements
Continued
Less: disbursements
Materials 40,000
Direct labor 24,000
Mfg. overhead 56,000
To maintain a cash balance
Selling and admin. 70,000 of $30,000, Breakers must
Equipment purchase - borrow $35,000 on its line
Dividends 25,000 of credit.
Total disbursements 215,000
Cash available over
disbursements $ (5,000)
Financing and Repayment
Cash available over
disbursements $ (5,000)
Financing:
Ending cash balance for April
Borrowing 35,000
Repayments - is the beginning May balance.
Interest -
Total financing 35,000
Ending cash balance $ 30,000
Continued
Beginning cash balance $ 40,000 $ 30,000
Add: cash collections 170,000 400,000
Total cash available 210,000 430,000
Less: disbursements
Materials 40,000 72,300
Breakers must
Direct labor 24,000 36,800
Mfg. overhead 56,000 76,000 borrow an
Selling and admin. 70,000 85,000 addition $13,800
Equipment purchase - 143,700 to maintain a
Dividends 25,000 - cash balance
Total disbursements 215,000 413,800 of $30,000.
Cash available over
disbursements $ (5,000) $ 16,200
Cash available over
Financing:
Borrowing 35,000 13,800
Repayments - -
Interest - -
Total financing 35,000 13,800
Ending cash balance $ 30,000 $ 30,000
Continued
BeginningAtthecashendbalanceofJune,$40,000Breakers$ 30,000
$ 30,000
Add: ca h collections 170,000 400,000
has enough cash to repay 335,000
Total cash available 210,000 430,000
the $48,800 loan plus interest 365,000
Less: disbursements
Materials at 12%. 40,000 72,300
72,700
Direct labor 24,000 36,800
24,000
Mfg. overhead 56,000 76,000
59,000
Selling and admin. 70,000 85,000
75,000
Equipment purchase - 143,700
48,300
Dividends 25,000 -
-
Total disbursements 215,000 413,800
279,000
Cash available over
$ 86,000
Cash available over
disbursements $ (5,000) $ 16,200 $ 86,000
Financing:
Borrowing 35,000 13,800
Repayments - - (48,800)
Interest - - (838)
Total financing 35,000 13,800 (49,638)
Ending cash balance $ 30,000 $ 30,000 $ 36,362
Annual Months Interes
t
Borrowing Rate Interest Outstandin Expense
g
$ 35,000 × 12% = $ 4,200 × 2 = $ 700
mths
13,800 × 12% = 1,656 × 1 mth. = 138
$ 838
Continued
Beginning cash balance $ 40,000 $ 30,000 $ 30,000 $ 40,000
Add: cash collections 170,000 400,000 335,000 905,000
Total cash available 210,000 430,000 365,000 945,000
Less: disbursements
Materials 40,000 72,300 72,700 185,000
Direct labor 24,000 36,800 24,000 84,800
Mfg. overhead 56,000 76,000 59,000 191,000
Selling and admin. 70,000 85,000 75,000 230,000
Equipment purchase - 143,700 48,300 192,000
Dividends 25,000 - - 25,000
Total disbursements 215,000 413,800 279,000 907,800
Cash available over
disbursements $ (5,000) $ 16,200 $ 86,000 $ 37,200
Cash available over
disbursements $ (5,000) $ 16,200 $ 86,000 $ 37,200
Financing:
Borrowing 35,000 13,800 48,800
Repayments - - (48,800) (48,800)
Interest - - (838) (838)
Total financing 35,000 13,800 (49,638) (838)
Ending cash balance $ 30,000 $ 30,000 $ 36,362 $ 36,362
Budgeted Income Statement
Cash Budgeted
Budget Income
Statement
After we complete the cash budget, we can prepare

the budgeted income statement for Breakers.
Budgeted Ending Inventory
Manufacturing overhead is applied on the basis of direct labor hours.
Production costs per unit Quantity Cost Total
Direct materials 5.00 lbs. $ 0.40 $ 2.00
Direct labor 0.10 hrs. $ 8.00 0.80
Manufacturing overhead 0.10 hrs. $18.02 1.80
$ 4.60
Budgeted finished goods inventory
Ending inventory in units 5,000
Unit product cost $ 4.60
Ending finished goods inventory $23,000
Total overhead $191,000 = $18.02 per hr.*

Total labor hours 10,600 hrs.
*rounded
Breakers, Inc.
For the Three Months Ended June 30
Revenue (100,000 × $10) $ 1,000,000
Cost of goods sold (100,000 × $4.60) 460,000
Gross margin 540,000
Operating expenses:
Selling and admin. Expenses $ 260,000
Interest expense 838
Total operating expenses 260,838
Net income $ 279,162
Budgeted Balance Sheet
Breakers reports the following account

balances on June 30 prior to
preparing its budgeted financial
statements:
– Land - $50,000
– Building (net) - $148,000
– Common stock - $200,000
– Retained earnings - $46,400
Breakers, Inc.
June 30
Current assets
25% of June
Cash $ 36,362
sales of Accounts receivable 75,000
$300,000 Raw materials inventory 4,600
Finished goods inventory 23,000
Total current assets 138,962
11,500 lbs. at Property and equipment
$.40 per lb. Land 50,000
Building 148,000
Equipment 192,000
5,000 units at Total property and equipment 390,000
$4.60 per unit. Total assets $ 528,962
Accounts payable $ 28,400
Common stock 200,000

Retained earnings 300,562
Total liabilities and equities $ 528,962
Breakers, Inc.
June 30
50% of June Current assets
purchases Cash $ 36,362
of $56,800 Accounts receivable 75,000
Raw materials inventory 4,600
Finished goods inventory 23,000
Total current assets 138,962
Property and equipment
Land 50,000
Building 148,000
Beginning balance $ 46,400
Equipment
192,000
Add: net income 279,162
Total property and equipment 390,000
Deduct: dividends (25,000)
Total assets
$ 528,962
Ending balance $300,562
Accounts payable $ 28,400
Common stock 200,000
Retained earnings 300,562
Total liabilities and equities $ 528,962
Budget Administration
The Budget Committee is a standing
committee responsible for . . .
 overall policy matters relating to the budget.
 coordinating the preparation of the budget.
E-Budgeting (Penganggaran Elektronik)
Employees throughout an organization

can submit and retrieve budget
information electronically. This tends to
streamline the entire budgeting process.
Firewalls and
Information Security
Budget information is extremely sensitive and
confidential. A firewall is a computer or router
placed between a company’s internal
network and the internet to control all
information between the outside world and
the company’s local network.
Sistem Penganggaran
Untuk Operasi-Operasi
Bisnis

Penganggaran Inkremental (Incremental
Budgeting)

Penganggaran Basis Nol (Zero-Based
Budgeting)
 Penganggaran Statik (Static Budgeting)
 Penganggaran Fleksibel (Flexible Budgeting)
Penganggaran Inkremental
(Incremental/Baseline Budgeting)

Adalah metode penganggaran yang hanya
mempertimbangkan perubahan sumber-sumber
daya dari anggaran tahun sebelumnya.

Anggaran tahun sebelumnya dijadikan sebagai
dasar penyusunan anggaran.

Banyak digunakan oleh organisasi
pemerintahan dan nirlaba.
Zero-Base Budgeting
(Anggaran Basis Nol)

Di dalam penyusunan anggaran, semua jajaran
manajemen bertolak dari nol dan menaksir
kebutuhan-kebutuhan sumber daya yang
diperlukan untuk mendanai aktivitas-aktivitas
tahun anggaran berikutnya.

Anggaran tahun sebelumnya tidak diterima apa
adanya.
Penganggaran Statik (Static Budgeting)

Merupakan anggaran yang dipakai oleh banyak
perusahaan jasa dan pada banyak fungsi
pendukung seperti bagian pembelian,
akuntansi, hukum.

Anggaran statik disusun untuk suatu tingkat
aktivitas tertentu.
Penganggaran Fleksibel (Flexible Budgeting)

Mengaitkan volume aktivitas dengan jumlah
uang yang dianggarkan.

Merupakan serangkaian anggaran untuk
berbagai macam tingkat aktivitas.

Anggaran fleksibel dapat membantu
manajemen menghadapi ketidakpastian
dengan memungkinkan mereka untuk melihat
taksiran hasil-hasil dan kisaran aktivitas
tertentu.
Formulasi Anggaran Fleksibel
• Anggaran fleksibel adalah anggaran yang dapat dibuat
untuk aktivitas dengan berbagai tingkatan.
• Untuk pelaporan kinerja, adalah penting untuk
membandingkan biaya aktual untuk tingkat aktivitas
aktual dengan biaya yang dianggarkan untuk tingkat
aktivitas aktual.
• Anggaran fleksibel memberikan cara untuk menghitung
biaya yang dianggarkan untuk tingkat aktivitas aktual.
• Anggaran fleksibel mensyaratkan pengetahuan akan
komponen biaya variabel dan biaya tetap, yang
didasarkan pada rumus sederhana : Y = F + VX.
International Aspects of
Budgeting
Firms with international operations face
special problems when preparing a budget.
Fluctuations in foreign currency exchange
rates.
High inflation rates in some foreign countries.
Differences in local economic conditions.
Participative Budgeting
Top Management
Middle Middle
Management Management
Supervisor Supervisor Supervisor Supervisor
Flow of Budget Data

Penganggaran partisipatif adalah suatu sistem anggaran yang memberikan
kesempatan bagi para manajer bawahan utk ikut menyusun anggaran.
Anggaran parisipatif memberikan rasa tanggung jawab kpd para manajer
yang lebih rendah dan mendorong timbulnya kreatifitas dan meningkatkan
tingginya tingkat keselarasan tujuan.
Potensi masalah yang muncul
dalam penyusunan anggaran
• Penetapan Standar yang terlalu tinggi


atau terlalu rendah personal goal.
• Memasukkan slack dalam

anggaran (padding the budget)
tindakan mengamankan anggaran.
• Partisipasi semu/formalisasi partisipasi

anggaran pseudoparticipation.
Behavioral Impact of Budgets
Budgetary Slack : ”Padding the Budget”

People often perceive that their performance
will look better in their superiors’ eyes if they
can ”beat the budget”.
Hmm....chafé déhhh!! ada yang ingin
ditanyakan...?
Yeah…it’s good.
It’s delicious How they manage
ice cream… this mart?
Operating Budget
for a Merchandising Company
• So Go’od Cheese Company is a wholesale distributor of blue cheese

and ice cream. The following information is available for April 2016.
• Estimated sales :
– Blue cheese 160,000 hoops at $10 each
– Ice cream 240,000 gallons at $5 each
• Desired inventories :
Beginning Ending
– Blue cheese 10,000 12,000
– Ice cream 4,000 5,000
• Estimated costs :
– Blue cheese $8 per hoop

– Ice cream $2 per gallon
Financial information :
• Beginning cash balance is $400,000.
• Purchases of merchandise are paid 60% in current month and

40% in following month. Purchases totaled $1,800,000 in March.
• Employee wages, salaries, and commisions are paid for in

current month. Employee expenses for April totaled $156,000.
• Overhead expenses are paid in the next month. The account

payable for these expenses from March is $80,000.
• Sales on credit are collected 70% in current period and 29% in

the next period. March sales were $3,000,000. Bad debts
average one percent of sales.
• Selling and administrative expenses are paid monthly and total

$540,000, including $40,000 of depreciation.
Please, prepare the following for April 2016 :
1. Sales budget in dollars

2. Purchases budget
3. Cash budget
4. Pro forma income statements
Let’s do it...!
Handy Company manufactures and sells two industrial products in a single plant. The new manager wants
to have quarterly budgets and has prepared the following information for the first quarter of 2001.
Estimated sales :
Drills 60,000 at $100 each
Saws 40,000 at $125 each
Predicted
inventories :
Beginnin Ending
g
Drills, finished 20,000 25,000
Saws, finished 8,000 10,000
Metal, direct materials 32,000 lbs. 36,000 lbs.
Plastic, direct materials 29,000 lbs. 32,000 lbs.
7,000 each
Handles, direct materials 6,000 each
Manufacturing requirements :
Direct Materials Direct Labor
Drills Metal, 5 lbs. at $8 per lb. 2 hours at $12 per hour
Plastic, 3 lbs. at $5 per lb.
Handles, 1 each at $3
Saws Metal, 4 lbs. at $8 per lb. 3 hours at $16 per hour
Plastic, 3 lbs. at $5 per lb.
Variable manufacturing overhead is applied at the rate of $1.50 per direct labor hour for each
product. Fixed manufacturing overhead is $214,000 per quarter, including noncash expenditures
of $156,000, and is allocated on total units completed.
Financial information :
 Beginning cash balance is $ l ,800,000.
 Purchases of direct materials and labor costs are paid for in quarter acquired.
 Overhead expenses are paid each quarter.
 Sales are on credit and are collected 50 percent in current period and the remainder the next
period. Last quarter's sales were $8,400,000. There are no bad debts.
 Selling and administrative expenses are paid quarterly and total $340,000, including $90,000 of
depreciation.
 All unit costs for the first quarter of 2001 are the same as they were for the last quarter of 2000.
Required:
For the first quarter of 2001, prepare :
(a) Sales budget in dollars
(b) Production budget in units
(c) Purchases budget
(d) Manufacturing disbursements budget
(e) Cash budget
(f) Budgeted income statement using the functional format (Hirzt : First determine the manufacturing costs
per unit for drills and saws. These include direct materials, direct labor, variable manufacturing overhead,
and the average fixed manufacturing overhead per unit completed.)
Cash Budget
• Lawrence, Inc., found that about 10 percent of its sales during the month were for
cash. Lawrence has the following accounts receivable payment experience:
– Percent paid in the month of sale 30%
– Percent paid in the month after the sale 60%
– Percent paid in the second month after the sale 7%
• Lawrence’s anticipated sales for the next few months are

– April $200,000
– May 240,000
– June 230,000
– July 246,000
– August 250,000
• Required:
• 1. Calculate credit sales for May, June, July, and August 2017.
• 2. Prepare a cash receipts budget for July and August 2017.

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Planning and Control Framework

Aids managers in coordinating

Providing information of resource for the

Capital Budget Master Budget

This budget is usually a twelve-month

Operating Budget Financial Budget

Operating Services Selling and

Sales Purchases Cost of Operating Budgeted

describe of activities to yield

• Communicate budget information

Production must be adequate to meet budgeted

Let’s prepare the production

Let’s prepare the direct materials budget.

10% of the following

This is the greater of

April quarter. June Quarter

Total cash collections $ 170,000

Back to Cash Dishbursment….

Total cash payments

140,000 lbs. × $.40/lb. = $56,000

After we complete the cash budget, we can prepare

Total overhead $191,000 = $18.02 per hr.*

Breakers reports the following account

Common stock 200,000

Employees throughout an organization

Supervisor Supervisor Supervisor Supervisor

Flow of Budget Data

• Penetapan Standar yang terlalu tinggi

Budgetary Slack : ”Padding the Budget”

• So Go’od Cheese Company is a wholesale distributor of blue cheese

– Blue cheese $8 per hoop

• Purchases of merchandise are paid 60% in current month and

• Employee wages, salaries, and commisions are paid for in

• Overhead expenses are paid in the next month. The account

• Sales on credit are collected 70% in current period and 29% in

• Selling and administrative expenses are paid monthly and total

1. Sales budget in dollars

• Lawrence’s anticipated sales for the next few months are

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