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Master budget - Coggle Diagram

- - - - Estimates the quantities of direct materiales to be purchased to support budgeted productionand desired inventory levels
      - Step 1:Budgeted direct materias = budgeted production volume x direct material quantity expected per unit
      - Step 2: Materials required for production+ Desired ending materials inventory - Estimated beginning materials inventory = Direct material quantity to be purchased
      - Step 3: Budgeted direct materials to be purchased = Direct Material Quantity to Be Purchased × Unit Price
    - - Estimates the direct labor hours and related cost needed to support budgeted production.
      - Step 1: Budgeted Direct Labor Hours Required for Production = Budgeted Production Volume x Direct Labor Hours Expected per Unit
      - Step 2: Direct Labor Cost = Direct Labor Required for Production × Hourly Rate
    - - Estimates the number of units to be menufactured to meet budgeted sales and desired inventory levels
      - Expected units to be sold + Desired units in ending inventory - Estimated units in beginning inventory = Total units to be produced
    - - estimates the cost for each item of factory overhead needed to support budgeted production.
  - - - Sales salaries expenses
      - Travel expense
      - Advertising expense
    - - Officer´s salaries expenses
      - Office salaries expense
      - Office rent expense
      - Office supplies expense
      - Miscellaneous administrative expenses
- - - - The primary source of estimated cash receipts is from cash sales and collections on account.
      - Collections of accounts recievable
    - - Estimated cash payments must be budgeted for operating costs and expenses such as manufacturing costs, selling expenses, and administrative expenses.