Cholin Co. manufactures a single product. It keeps inventory of raw materials at 150% of the coming month's budgeted production needs. Each unit of product requires three pounds of materials. The production budget is in units: May-1,000; June-1,200; July 1,300; August-1,600. Raw material purchases in July should be? a. 5,250 pounds b. 1,950 pounds c. 4,800 pounds d. 3,500 pounds
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.
Cholin Co. manufactures a single product. It keeps inventory of raw materials at 150% of the coming month's budgeted production needs. Each unit of product requires three pounds of materials. The production budget is in units: May-1,000; June-1,200; July 1,300; August-1,600. Raw material purchases in July should be?
a. 5,250 pounds
b. 1,950 pounds
c. 4,800 pounds
d. 3,500 pounds
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