FORMULAS

Word Bank: Operating Income, Net Income, Units in Beginning Inventory, Production Budget Formula, Gross Profit, Total Sales Revenue, Sales Revenue

___________ - Units needed for sales + Desired Ending Inventory = Total Units Needed - ___________ = Units to Produce

Sales budget: number of unit sales X Sales price per unit = ___________

Word Bank: Total DL Hours Required, Beginning Inventory, Cost of goods sold, Desired Ending DM Inventory, Total Direct Labor Cost

Direct Material Budget Formula: Quantity of DM needed for production + ___________ = Total Quantity of DM Needed - D< ___________ = Quantity of DM to purchase

Direct Labor Budget Formula Units to be Produced X DL Hours per Unit = ___________ X DL Cost per Hour = ___________

Budgeted Income statement

___________ Less: Cost of Goods Sold = ___________ Less: Operating Expenses = ___________ Less: Interest Expense = ___________

Cost of Goods Sold Formula:

Number of Unit Sales X Manufacturing cost per unit = Cost of goods sold