Each finished unit of merchandise Haw contains 1.25 cm of Material H. Budgeted sales of merchandise Haw in the period is 25,000 units. Budgeted data for the month of December are as follows: 1st December Finished goods 2,300 units 31st December Finished goods 2,000 units Opening inventory of raw materials 12,800 cm Closing inventory of raw material 9,000 cm What was the purchase of Material H? Show solution. Answer must be 20,900 cm
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.
Each finished unit of merchandise Haw contains 1.25 cm of Material H. Budgeted sales of merchandise Haw in the period is 25,000 units. Budgeted data for the month of December are as follows:
1st December Finished goods 2,300 units
31st December Finished goods 2,000 units
Opening inventory of raw materials 12,800 cm
Closing inventory of raw material 9,000 cm
What was the purchase of Material H?
Show solution. Answer must be 20,900 cm
Step by step
Solved in 2 steps with 2 images
