MGA 202 1st Edition Lecture 13Outline of Last Lecture- This weekend you took Exam #1 (grades back after break)- Now, Chapter 7: Profit Planning (will NOT be on next exam!)- Chapter 7 HW Due Friday 3/13- No Recitation Quiz this Friday- Budget Project Due 3/27Current Lecture*A lot of information is needed to create a master budget!The order of budgets- Sales Budget- Schedule of Expected Cash Collections(this information is put into…)- Production Budget(& this information is put into…)- Direct Materials Budget1. Sales Budget Budgeted sales & selling price per case are given by a manager Total sales is calculated, Total Sales = budgeted sales in units x unit price2. Schedule of Expected Cash Collections All sales are on account (on credit)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Collection pattern changes with each company Ex. 70% is collected in the quarter of sale, 30% is collected in the following quarter3. Production Budget Lists the # of units that must be produced to satisfy sales needs & provide for desiredending inventory  A lot of this information comes from the previous 2 budgets4. Direct Materials Budget Details the raw materials that must be purchased to fulfill the production budget & to provide for adequate inventories  A lot of information comes from the production budgetNext Lecture-3/11- Continuing with Chapter 7 Material- Project related questions &