The Production Budget
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- Опубликовано: 29 авг 2024
- This video explains what a production budget is and demonstrates how to put together a production budget with a comprehensive example.
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I don't mean to come across too strong but bro I literally love you
Agree!!!
I serious appreciate the time and effort you’ve put in to making and producing these videos. You may possibly think they are trivial and nothing special but they are a gold mine. incredibly helpful. Explanations like this are so hard to come by. The textbooks and uni lectures\ notes these days just confuse the heck out of everyone whereas this video is so straight forward with a clear and logical explanation behind it. Can’t express my gratitude. Keep up the good work espira!
Thank you for taking the time to write such a kind comment. I put a lot of work into creating the videos, so it's uplifting when I get positive feedback like this. I'm so happy that you find the videos helpful, and I will continue making more of them. I hope your classes are going great and that you have a very fulfilling career!
Honestly this video is so helpful! My accounting professor is soooo confusing, you are helping me pass my final!!
im doing a double diploma in project management and this video explained this subject in two minutes better than a four hour tutorial through the course. thanks heaps
Glad it helped!
I can watch these videos all day whereas, I don't even join online classes which definitely implies that teaching is based on interests and understanding. When you understand well, you get more interested to learn more. Thank you sir for teaching us so well to save us from futile online classes!
I appreciate your kind words and support!
I learned Cost & Management Accounting 2 years ago on my first year of my bachelor study. Currently, I'm on my internship at an audit firm. But the pandemic caused my supervisor to force me to take unpaid leave. Therefore, I would have had to repeat or extend my internship which would be a waste of time. With my college tolerance, I could pass internship if I answer some case study given by my college. One of the questions is about cost and management accounting. I searched my notes or anything I could find about the course because I already forgot few of the steps to answer the question but I found nothing. I thank you forever for publishing this video. It helped me a lot. Wish me luck and thank you, sir. God bless!
Glad the video was helpful!
What a great guy . Thank you for all your help with these instructive videos but also for everything else you have done outside of RUclips like help kids. Your story is inspirational. Cheers!
Thanks Alexis!
Thank you for simplifying all concepts and making it so easy to understand!
Happy to help!
The videos really do help clarify the point of budgeting, so thank you for making them. My only criticism is the example given for Beginning Inventory, Quarter 1. Assuming that last year's desired ending inventory remain unchanged, then I believe that the beginning inventory figure should be 25% of Quarter 1's budgeted sales, because 25% was already accounted for in Quarter 0 (for lack of a better term...that's the quarter before quarter 1) and produced to be made available in Quarter 1, so 25% of budgeted sales is already made in Quarter 0 and the figure for beginning inventory should be 12.5 units...
You make all this so much easier to comprehend. Thank you Edspira
You're so welcome!
Thank you, this was really understandable! Instead of just feeling like I’m plugging in numbers and not really knowing why.
THANK YOU, BECAUSE OF YOU I WILL PASS THE ACCOUNTING LESSON
Awesome!
Very glad I found this channel. Keep up the great work! Thank you soo much
Thank you!
Great explanation! Very clear and concise.
Thank you!
Man thats amazing i got my accounting exam tmrw and with your help i think i can get a high mark pagal :D
+Eldiyar Djusupov Awesome! I hope you did great on your exam!!
Hey where are the videos for direct materials budget, direct labor budget and manufacturing overhead budget ?
took the class too soon bud, wooo new content is out!
THANK YOU!! Gosh I have an accounting exam tomorrow and I understood the calculation but not the theory behind it!! You saved my grade!!!!
Excellent! I hope you do well on the exam.
Thank you for your time/effort to put this together. So, so helpful!
You are super hero. May God Bless You Sir. THANK YOU SOO MUCH. I really apreciate it
You are most welcome!
YOU ARE THE BEST!!!! You saved my whole semester :D
Awesome. Thanks for watching!
Why did you chose desired EI as 15 ?? I didn't got the logic.
That number will be given to you in the question since you aren't given numbers to calculate it
@@andrewgillim5952 why cant you use 25% * 50 = 12.5 (desired % * Q1 projected sales units)
@@nicholaspang9622 Because you make yearly budgets, budgets don't just repeat continuously, price levels/units sold might fluctuate in the next year, and instead of making it complicated and giving us next years budget, he decided to just give us the number. That's my understanding of it atleast
The name only says "desired". It is assumed that the next year first quarter sale to be 60 units (15/25%)
It's really clear... thank you so much..
My pleasure! Best wishes :)
+Education Unlocked the other accounts are really annoying .
Thank you so much 🤍
your explanation is just perfect!!!
Thank u
Thankyou! You made it very easy. ♥️
You’re welcome 😊
i have a doubt in quarter 4 why did you assume 15 in ending stock variable.How did you calculate that value.Please explain that asap
The beginning inventory for Q1 should be (.25 × 50) aka desired ending for the previous quarter, not 15. Where did you get that number from?
The 15 is 25% of the next year's Q1. This information was not given in the problem, so I assumed it to be 15 for demonstrative purposes.
that part has me lost as well. Thanks for this comment it helped me!!!
Im sorry, but where did you get 15 in Q4? Im preparing for my management accounting exam. So thank you so much! You made my life easier!
If you mean the 15 units as the desired ending inventory for the 4th quarter, I state at 7:08 that this number is assumed
How would you deal with a BI(FG) that's much more than the Total needed. in the video let's say a Total Needed of 125, BI(FG) of 1000?
my problem is the assumd amounts, which the problem i have need these to be calculated.
So helpful. Thank you SO much
😀
if only you could add these videos to Khan Academy's accounting series. they don't have any managerial accounting videos.
You are awesome my friend! i thank you! earned a like and subscriber.
Thanks for the sub!
Thank you very much for your help . I appreciate your work and videos keep up !!!
Thanks for the support!
what i dont understand is how in my class we deal with q4 often. Which is just like in this example- where we dont know what to do. Ans here's where we have to ASSUME someting but the ASSUMPTIOn is always an exact number it seems like xD So what can i do? How do i know what to put there?
You are a life saver!
Thanks Silvia. I'm glad these videos are useful!
Thank you!
Thank you so much. You are my Andy.
Why you assume for quater 4 is 15 ?
this is better than the videos i actually had to pay for on pearson
Thank you very much.
How did 15 arise from?
Assumed
Thank you it was really helpful
If there is safety stock 100 units.
Where will i add that safety stock?
Does it have to be deducted from Total need?
Thank you.
Please anyone, i have an exam tomorrow, is the question say: The company policy of closing inventory is to keep 10% of the Budgeted Sales revenue as Closing Inventory. There was a closing inventory of 150units from the previous quarter? So it means we multiply 10% by each quarter sales revenue and not quantity right?
Thank youu sooo much❤️🤧
No problem 😊
Damnnnn I LOVE YOU
HA!! I'm glad you like the videos :)
could you please show me how to find the Q4 15 ?
THANK YOU!
your my new prof
Ha! I'm glad these videos help you.
you saved my life
What if we are only told to prepare a production budget for only 6 months i.e first 2 quarters only? how do i get the BI (Finished goods) for the Q1?
Please do the direct material and labor budgets
These will be released on 10/07/18...stay tuned!
Thank u so much , u r outstanding
Where did you get the 15 in the EI (quarter 4)???
Thank u S I R.
Should I just leave it as 15 in quarter 4, desired ending inventory? Is that a valid?
It was amazing! you are best. Great job. God bless you.
Thank you so much!
I noticed that the budgeted sales for the year was the same value as the budgeted production, was that on purpose or was it just coincidence? Do they have to be the same all the time
Keep up the good work,we appreciate it👌
Thanks Emmanuel!
so do we always assume the beginning inventory ?
Quite similar to computing Cost of Good Sold, at the very least its the same formula.
This 15 for ending inventory where comes from?
Tq so much.....
thank You sooooo much
One mistake exist here if the beggining inventory of 300 unit os 75 that ia ultimately endi ng inventory of 50 product s month that ia 25 percent of 300 products it means the begigginng invetory of ist month will ne 12.5 that ia 25 percent of 50
Have been wondering here
can i ask guys? how do we find the ending invetory for the 4th quarter?i really don get it there
He said it was assumed
I don't understand why you assume for quarter 4 is 15? how calculate?
I stated at 7:06 that this is assumed. You can't calculate it in this example because I didn't provide the expected sales for the following quarter
Why was 15 assumed? do we always have to assume a certain number or any number? I need help i hv quiz tomorrow
From where desired EI of Quarter 4 (15) came ? Anybody please tell
i want to know how did you get the beginning inventory
The beginning inventory at the start of the year would be the ending inventory from the year before
I thought this video will help me to know how to get the quarter 4 of the ending inventory, but didn't help at all.
Thank you so much! Where do I pay you for saving my life?
😆
could you guys please show me how to find the Q4 15 ?
excellent vid..
You would have to know the budgeted sales of Q1 for the following year, then multiply by 25%. As stated in the video, I didn't want to include more than 1 year of data, so I assumed this to be 15. This, there's no calculation involved. I supplied this number so that Q4 could be completed.
Edspira
I multiple the Q 1 with 25℅ but i didn't find 15 i got 12.5.... Am still confused i didn't get the point well.
Thanks
He meant that you’d have to know the budgeted sales for next year’s first quarter to find quarter 4
briliant .. thanks for your easy to reach cultures.. i have a question here, you have mentioned at the sales budget video that we have to consider the quantity and value (price) because it will guarantee the cash flow. isn't supose to be same when its regarding to production budget, the mention here was just about the quantity as quantification, and the production process should be cash outflow ? or its has to prepare jsut like the video showed ?
or it's the purchasing budget function?
How did he get the 15 for the 4th
from where came the last one of desired EI which is 15 ?
This would be 25% of the next year's Q1, which was assumed to be 15 for demonstrative purposes.
How though
Next year's Q1 sales budget is 60
How u find ending inventory 15?
In this example, I state at 7:06 that 15 is assumed. But if I didn't provide that information, you calculate the desired ending inventory based on the expected sales for the following quarter
So how u can 15 (25%) for Q4? if u dont have Q5?
Cupids 5210 he said that because he didn't want to complicate thing by giving us another year, he just made up a number on the spot and said assume 25% of Q5 was 15 bicycles.
Where did you get the 15 bi?
I state at 8:44 that this is assumed to be the beginning inventory
excuse me, in the Q 4 on plus desired "15 the sum of what???
LD Football it’s from the next year’s q1 which is not given to us. If you have and exam, you’re instructor will likely give you the number.
May I know how to get 15 ?
Why did you assume 15 bicycles?
U are so slow you literally could have just said “these numbers come from the sales budget” instead of saying the same thing for like 30 seconds
AUTHORISED DEALER
Alternative Nelvana
Thank you!