Alliance Company budgets production of 33,000 units in January and 37,000 units in February. Each finished unit requires 4 pound of raw material K that costs $2.50 per pound. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The January 1 inventory for this material is 46,200 pounds. What is the budgeted materials cost for January? -$330,000 -$459,500 -$344,000 -$214,500 -$245,000
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.
![Alliance Company budgets production of
33,000 units in January and 37,000 units in
February. Each finished unit requires 4 pound of
raw material K that costs $2.50 per pound. Each
month's ending raw materials inventory should
equal 35% of the following month's budgeted
materials. The January 1 inventory for this
material is 46,200 pounds. What is the
budgeted materials cost for January?
-$330,000
-$459,500
-$344,000
-$214,500
-$245,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F734954fb-fae0-4366-b2ce-e1efb24819e4%2F64b4d642-b803-41ab-92c2-338d8ac02ac8%2Fkk8jc8_processed.jpeg&w=3840&q=75)
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