A private company has been granted a license to produce vaccines by the government. The Management Accountant has been working on the budgets using the figures below. Sales Forecast January Selling Price 8,000 Production Volume Forecast January 10,000 February 10,000 C 20 February 12,000 March 15,000 March Materials Each vaccine requires 15ml of material, which costs £120 per litre (1,000 ml) Opening inventories of material at the start of January are 200 litres Working days in the month is equal to 20 days Basic rate of pay £16 per hour Overtime is paid at time and a half Each vaccine takes 35 minutes (labour hours) to produce. Labour Number of employees in production department is equal to 20 Standard working day is 12 hours Working days in the week is equal to 5 days 15,800 Required Complete the working for the material purchases budget below Complete the working for the labour budget below April The company has a policy of making sure there is sufficient closing inventory to meet production requirement for the following m Production in April is expected to be 12000 units Material Purchases Budget Enter your values to the nearest whole number with no E sign 17,000 April 12,000
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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

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