Charm Enterprises' production budget shows the following units to be produced for the coming three months: O 11,352 oz. 11,520 oz. 7,448 oz. 15,384 oz. April 2,560 Units to be produced A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month's ending Raw Materials inventory should be 35% of the following month's production needs. The materials to be purchased during May should be: 7,616 oz. May 2,880 June 2,760
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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