Date Accounts and Explanation Debit Credit Raw Materials Inventory 7,980 a. Direct Materials Cost Variance Accounts Payable 168 8,148 b. Raw Materials Inventory 7,980 Direct Materials Efficiency Variance 168 Accounts Payable 8,148 Work-in-Process Inventory 7,980 C. Direct Materials Cost Variance 168 Raw Materials Inventory 8,148 d. Work-in-Process Inventory 7,980 Direct Materials Efficiency Variance 168 Raw Materials Inventory 8,148
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.
MajorNet Systems’s static budget predicted production of and sales of 100 connectors in August, but the company actually produced and sold only 84 connectors. Direct materials were budgeted at $95 per connector. The company purchased and used direct materials that cost $8,148. What is the
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