For each unit of finished goods Surf Inc. needs 3 pounds of material. The production budget is shown below for the next 4 months: Description Month 1 Month 2 Month 3 Month 4 Production Budget in Units 14,000.00 15,000.00 16,000.00 12,000.00 Prepare the material purchases budget and show the total cost of material to purchase based on the following for Months 1-3
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.
For each unit of finished goods Surf Inc. needs 3 pounds of material. The production budget is shown | ||||
below for the next 4 months: | ||||
Description | Month 1 | Month 2 | Month 3 | Month 4 |
Production Budget in Units | 14,000.00 | 15,000.00 | 16,000.00 | 12,000.00 |
Prepare the material purchases budget and show the total cost of material to purchase based | ||||
on the following for Months 1-3 | ||||
Beg Inv Month 1 | 8,800.00 | pounds of material | ||
Cost per pound | $4.75 | |||
Required Ending Inventory | 12% | of next months requirement | ||
Description | Month 1 | Month 2 | Month 3 | |
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