GOLDEN Corporation budgeted the following production for year 2021 as the following Quarter Budgeted production/units First 45000 Second 38000 Third 34000 Fourth 48000 Each unit of product requires 5 pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 25% of that quarter's direct material requirements. The budgeted production of the first quarter of year 2022 is 50000 units. Requirement: Prepare budgeted direct materials purchases for year 2021.
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.
GOLDEN Corporation budgeted the following production for year 2021 as the following
|
Quarter |
Budgeted production/units |
|
First |
45000 |
|
Second |
38000 |
|
Third |
34000 |
|
Fourth |
48000 |
Each unit of product requires 5 pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 25% of that quarter's direct material requirements. The budgeted production of the first quarter of year 2022 is 50000 units.
Requirement: Prepare budgeted direct materials purchases for year 2021.
Step by step
Solved in 2 steps
