Budgeted Sales for the coming year: 45,000 units. Finished goods inventory, January 1: 4,000 units Finished goods inventory desired, December 31 5,000 units Direct labor hours required in production: Cutting Department: 2 hours per unit; Assembly Department: 3 hours per unit Direct Laborers earn: Cutting Department: $18 per hour; Assembly Department: $25 per hour PREPARE PRODUCTION BUDGET IN UNITS: PREPARE A DIRECT LABOR BUDGET:
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 Sales for the coming year: 45,000 units.
Finished goods inventory, January 1: 4,000 units
Finished goods inventory desired, December 31 5,000 units
Direct labor hours required in production:
Cutting Department: 2 hours per unit; Assembly Department: 3 hours per unit
Direct Laborers earn:
Cutting Department: $18 per hour; Assembly Department: $25 per hour
PREPARE PRODUCTION BUDGET IN UNITS:
PREPARE A DIRECT LABOR BUDGET:
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