[MEET 7] PENGANGGARAN - ANGGARAN LABA RUGI

Summary

In this online budgeting lecture, Nilam Kemala covers the preparation of a profit and loss budget. The discussion focuses on the sources of information needed, such as the sales budget, production budget, and cost of production. Methods like FIFO and average cost are explained for calculating the ending finished goods inventory. The process of preparing a profit and loss budget includes inputting sales, calculating inventory costs, and estimating tax expenses. The session concludes with an example calculation for PT Abadi’s budget for January 2021.

Takeaways

• 😀 The purpose of the profit and loss budget is to provide management with information about the estimated net profit or loss for a company during a budget period.
• 😀 Key sources of information for preparing the profit and loss budget include the sales budget, production budget, production cost budget, operating cost budget, corporate income tax rates, and the cash budget.
• 😀 The sales budget provides estimated sales figures, which are crucial for projecting revenue in the profit and loss budget.
• 😀 The production budget helps estimate the values of beginning and ending inventory for finished goods, which are essential for calculating the cost of goods sold (COGS).
• 😀 The production cost budget outlines the cost of producing finished goods, including raw materials, labor, and overheads, which are necessary for calculating COGS.
• 😀 The operating cost budget estimates expenses for sales and administration, which are included in the profit and loss budget calculations.
• 😀 The corporate income tax rate affects the calculation of income tax expense in the profit and loss budget.
• 😀 The cash budget provides details about interest expenses, interest income, and bad debt, which are relevant to the profit and loss budget.
• 😀 In the calculation of ending finished goods inventory, two methods are commonly used: FIFO (First In, First Out) and average cost method.
• 😀 The FIFO method assumes that the first units produced are sold first, and the ending inventory is valued based on the most recently produced goods.
• 😀 The average method calculates the cost of ending inventory based on the average production cost of the goods available for sale during the period.

Q & A

What is the main goal of preparing the profit and loss budget?

The main goal of preparing the profit and loss budget is to provide management with information about the estimated net profit or loss that the company will incur during a specific budget period.

What are the key sources of information needed to prepare a profit and loss budget?

The key sources of information for preparing the profit and loss budget include the sales budget, production budget, production cost budget, operating cost budget, corporate income tax rates, and cash budget.

How does the sales budget contribute to the profit and loss budget?

The sales budget provides information about the estimated sales value during the budget period, which is crucial for calculating revenue and ultimately the profit in the profit and loss budget.

What does the production budget provide, and how is it used in the profit and loss budget?

The production budget provides information about the beginning and ending inventory values of finished goods, which is necessary for calculating the cost of goods sold (COGS) in the profit and loss budget.

What is the difference between the FIFO and average cost methods in inventory calculations?

The FIFO (First In, First Out) method assumes that the first finished goods produced are the first sold, and the ending inventory consists of the most recently produced goods. The average cost method assumes that the cost of finished goods inventory is based on the average cost of production, including both the beginning inventory and the production costs incurred during the period.

How is the cost of ending finished goods inventory calculated using the FIFO method?

Using the FIFO method, the cost of ending finished goods inventory is calculated by multiplying the number of units in the ending inventory by the production cost per unit of the most recently produced goods.

How is the cost of ending finished goods inventory calculated using the average cost method?

Using the average cost method, the cost of ending finished goods inventory is calculated by first determining the total production cost and total cost of beginning inventory, then dividing this total by the total number of units of finished goods available for sale to find the average cost per unit. The average cost is then multiplied by the number of units in the ending inventory.

What is the role of the operating cost budget in preparing the profit and loss budget?

The operating cost budget provides information about the estimated value of sales and sales administration expenses, which is essential for calculating operating costs in the profit and loss budget.

How is corporate income tax expense determined in the profit and loss budget?

The corporate income tax expense is determined by applying the income tax rate to the estimated taxable income for the budget period. In the example given, the income tax rate is 30%, and the estimated income tax expense is calculated based on the budgeted net income.

What steps are involved in preparing the profit and loss budget for PT Abadi in the example?

To prepare the profit and loss budget for PT Abadi, the steps include: 1) creating the profit and loss budget format, 2) inputting sales data, 3) calculating the cost of finished goods inventory (using the average method in this case), and 4) calculating the estimated income tax expense based on the profit before tax.