AC239 Unit 7's budget schedule links sales, production, materials purchases, labor and overhead through desired ending inventories and ends at the budgeted cash position. Searches like "ac 239 unit 7 assignment example", "ac239 unit 7 sample" and "ac239 unit 7 example" land here.
What a finished AC239 Unit 7 budget schedule looks like
Six compact schedules, each with four quarter columns and a year total. The sales budget multiplies forecast units by price. The production budget takes each quarter's sales units, adds the desired ending finished goods, stated as a percentage of the next quarter's sales, and subtracts beginning finished goods. The direct materials budget multiplies production by pounds per unit, adds desired ending materials, subtracts beginning materials, and prices the result as purchases. Direct labor multiplies production by hours per unit and the wage rate. Overhead separates a variable rate per labor hour from fixed amounts, with depreciation removed in a separate line to leave cash overhead. A budgeted cost per finished unit follows, then the cash schedule, which draws collections from the sales budget and payments from the purchases, labor and cash overhead lines.
How a AC239 Unit 7 example is structured
Dependency sets the sequence, and the finished sample keeps to it strictly: sales, production, materials, labor, overhead, unit cost, cash. No schedule uses a figure that has not already appeared above it, so a reader can trace any cell upward. For flows such as units produced or pounds purchased, the year-total column sums the four quarters; for inventory lines it takes the beginning figure from the first quarter and the ending figure from the fourth, a distinction stated in a footnote on the production budget. The fourth quarter's desired ending inventory needs the first quarter of the following year's sales, which the problem supplies and the sample cites. A closing paragraph reads the chain for a production manager, naming the quarter where purchases peak ahead of sales and the reason: inventory is being built for the busy quarter that follows.
Sales budget
Forecast units by quarter times the selling price, with a year total. Every later schedule takes its volume from this line.
Production with an inventory policy
Sales units plus desired ending finished goods less beginning finished goods. The ending target is a stated share of the next quarter's sales.
Materials purchases in pounds and dollars
Production times pounds per unit, plus the materials cushion for next quarter, less what is already on hand, priced at the budgeted cost per pound.
Labor and overhead
Hours per unit times production for labor; a variable overhead rate per hour plus fixed amounts, with depreciation pulled out so the cash figure is visible.
Budgeted unit cost
Materials, labor and overhead per finished unit, the figure the budgeted income statement and ending inventory valuation both rely on.
Cash schedule and reading
Collections and payments drawn from the schedules above, and a paragraph naming the quarter where purchases run ahead of sales.
Where marks go in AC239 Unit 7
The production budget is where most points go. Units to produce set equal to units sold ignores the inventory policy the problem stated, and every downstream schedule inherits the wrong volume, so in many sections the grader deducts once for the error and again wherever it spreads. The materials budget loses marks when purchases are computed from sales rather than from production, or when the ending materials target is based on the current quarter instead of the next one. A direct labor schedule priced on sales units instead of production units is a quieter version of the same mistake. Year-total columns that add four quarterly inventory balances together are a smaller, very common deduction. Finishing on the cash schedule with no comment about the purchasing peak leaves the interpretive marks unclaimed.
Get a AC239 Unit 7 example written to your instructions
The chain rests on the Unit 7 problem's quarterly forecast, price, inventory policies, input standards and collection terms. Attach the rubric and any template your section provided. Six linked schedules are returned inside 24-48h as a working spreadsheet whose formulas can be traced cell by cell, and the first custom sample costs nothing.
AC239 Unit 7 questions, answered
Why does production differ from sales in the budget?
Because the company holds finished goods between quarters. When the next quarter's sales are expected to be higher, the ending inventory target rises and production runs ahead of sales to build it; when sales are expected to fall, production drops below sales and inventory is drawn down. That gap is what the production budget exists to show.
Where does the fourth quarter's ending inventory come from?
From the first quarter of the following year. The policy ties ending inventory to next quarter's sales, so the final column needs a sales figure outside the budget year, and AC239 problems almost always provide one in the facts. The sample cites it in a footnote so the source of that one number is never in doubt.
Does the master budget need a budgeted income statement and balance sheet?
Some sections stop at the cash schedule and others ask for the full set. When the statements are required, the budgeted income statement uses the unit cost from the schedules times units sold, and the budgeted balance sheet takes its inventory and cash from the ending figures of the chain. The sample adds them when the instructions ask.