REVENUE PROCESS CONVERSION PROCESS EXPENDITURE PROCESSSales Budget: expected unit sales and sales revenue: Expected Unit SalesExpected sales revenue (calculated by multiplying the expected unit sales by the expected selling price)Production Budget: Determines how many units we need to produce, calculated as:Beginning Balance (# of units to sell)+ desired ending inventory of finished goods- beginning inventory of finished goods= number of units to produceDirect Materials Purchases Budget: quantity & dollar amount needed to meet production (production budget) and desired levels of ending direct materials inventory, calculated as:# of finished goods units to produce (from production budget)convert to direct material needs by multiplying by lbs, liters, etc.+ desired ending inventory of direct materials- beginning inventory of direct materials= amount of direct materials to purchasex by the direct materials’ purchase price in lbs. liters, etc.= direct material purchases in dollarsCash Receipts Schedule: amount of cash receipts (or collections) expected from customers- Analyze customer payments (when cash is expected from customers)- Determine how much cash will be received (sales discounts)- Uncollectible Amounts are NOT included on this scheduleCash Disbursements Schedule: expected amounts of cash payments for direct material purchases- Analyze how company will make payments (payment patterns)- Determine how much the payments will be (purchase discountsAccounts Receivable Schedule: expected amount of sales still owed by customers, calculated as: Beginning Balance:+ Sales- Cash Received- Sales Discounts- Uncollectible Amounts= Ending BalanceAccounts Payable Schedule: expected amounts of direct material purchases still owed by the company, calculated as:Beginning balance:+ purchases- cash payments- discounts taken= Ending balanceMarketing & Distribution Budget: NOT calculatedAdministrative Budget: NOT calculatedDirect Labor & Manufacturing Overhead Budget: NOT