Budget is being created for next year. Expected production of Q1 = 15201 units Q 2 = 10597 units Ending inventory of finished goods for each quarter = 25% of the next quarter's budgeted sales in units 4 pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. 9895 pounds of raw materials in inventory at end of current year.
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.
Budget is being created for next year.
Expected production of Q1 = 15201 units
Q 2 = 10597 units
Ending inventory of finished goods for each quarter = 25% of the next quarter's budgeted sales in units
4 pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials.
9895 pounds of raw materials in inventory at end of current year.
Compute budgeted raw material purchases in pounds for first quarter of next year.
Round to the nearest whole pound. Do not round intermediate calculations.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
