Budgeted inventories for the Remle Company follow: January 1 December 31 Direct materials $24,800 $26,700 Work in process 57,600 55,200 Finished goods 81,300 87,400 Additional budget information follows: Total manufacturing costs $354,500 Cost of goods manufactured 356,900 Calculate the budgeted cost of goods sold
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.
Budgeted inventories for the Remle Company follow:
|
January 1 |
December 31 |
|
| Direct materials |
$24,800 |
$26,700 |
| Work in process |
57,600 |
55,200 |
| Finished goods |
81,300 |
87,400 |
Additional budget information follows:
| Total |
$354,500 |
| Cost of goods manufactured |
356,900 |
Calculate the budgeted cost of goods sold.
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