Florida Co. manufactures a single product and keeps its inventory of finsihed goods at 75% of the coming month's budgeted sales and inventory of raw materials at 50% of the coming month's budgeted production needs. Each unit of product requires two pounds of materials. The production budget in units: May, 1,000; June 1,200; July, 1,300; August, 1,600. How many pounds of materials will be purchased for June?
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.
Florida Co. manufactures a single product and keeps its inventory of finsihed goods at 75% of the coming month's budgeted sales and inventory of raw materials at 50% of the coming month's budgeted production needs. Each unit of product requires two pounds of materials. The production budget in units: May, 1,000; June 1,200; July, 1,300; August, 1,600. How many pounds of materials will be purchased for June?
Step by step
Solved in 3 steps with 2 images
