Appendix II Expected Unit Sale November 474,667 December 712,000 January's sales increases by 50% incrementally each month 10% following month's production requirements 10% of Estimated first quarter sales Desired Ending Finished Goods: January's Beginning finished goods: Desired Ending Direct Materials (lbs): January's Beginning Direct Materials (Lbs): 5% next month's production 10% Estimated first quarter's production Direct Materials per unit. 2 lbs Direct Materials cost per lb. $0.75 Collection Contract Schedule 60% in the same month of sale 30% in the next month of sale 10% two months after sale Scheduled Payments 50% in the month of purchase 50% in the next month of purchase Selling & Administrative $ Variable Expenses per Unit Fixed Expenses 1.40 Advertising 15,000.00 Insurance 1,400.00 Salaries 12,000.00 Depreciation 2,200.00 Other 3,000.00 Total Direct Labour Cost $ January February 4,037,040.00 6,055,560.00 March 9,788,400.00 Total Indirect Labour Hours January 224,280 February 336,420 March 435,040
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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