ach unit of finished product uses 6 kilograms of raw materials. The production and inventory budgets for May 2007 are as follows: Beginning Inventory: Finished goods 15,000 units Raw materials 21,000 kg. Budgeted unit sales 18,000 units Planned ending inventory Finished goods 11,400 units Raw materials 24,400 kg. During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process. How many kilograms of raw materials should be purchased in June? a. 89,800 b. 99,400 c. 96,000 d. 98,440
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.
ach unit of finished product uses 6 kilograms of raw materials. The production and inventory budgets for May 2007 are as follows:
Beginning Inventory:
Finished goods 15,000 units
Raw materials 21,000 kg.
Budgeted unit sales 18,000 units
Planned ending inventory
Finished goods 11,400 units
Raw materials 24,400 kg.
During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process.
How many kilograms of raw materials should be purchased in June?
89,800
99,400
96,000
98,440
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