Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: & Cost of goods sold Dec. Year 1 (Actual) s $37,000 Jan. Year 2 Feb. Year 2 (Budgeted) (Budgeted) $67,000 $87,000 Mar. Year 2 (Budgeted) $57,000 Desired ending inventory levels are 27% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
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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