A company has created the following production budget: Month May 트 June July August Budgeted production 100,000 units 125,000 units 137,000 units 150,000 units Each unit produced requires 3 pounds of direct materials. The company requires a direct materials ending inventory each month of 20% of the next month's production needs, direct materials inventory on April 30 was consistent with this requirement. How many pounds of direct materials would the company budget to purchase in June?
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.
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