2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 Q2 Q3 Q4 Production in Units 30,000 40,000 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: А. 52,000 рounds В. 192,000 рounds C. 208,000 pounds D. 216,000 pounds
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![2. Al Nebras Company has budgeted production for next
year as follows:
1st Year
Q1
Q2
Q3
Q4
Production in Units 30,000 40,000 50,000 60,000
Four pounds of material X are required for each unit
produced. The company has a policy of maintaining a stock
of material X on hand at the end of each quarter equal to
20% of the next quarter's production needs for material X.
A total of 8,000 pounds of material X are on hand to start
the year. Budgeted purchases of material A for the third
quarter would be:
A. 52,000 pounds
B. 192,000 pounds
C. 208,000 pounds
D. 216,000 pounds](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d40e210-6526-49c2-9de7-80d7fcce6069%2Fb806cc61-d07c-4474-a611-adad355a80bb%2F0o558dx_processed.jpeg&w=3840&q=75)
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