Keener Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2020 through June 30, 2021. July 1 2020 June 30 2021 Raw material 40,000 10,000 Work-in process 8,000 8,000 finished goods 30,000 5,000 Three (3) units of raw material are needed to produce each unit of finished product. If 450,000 finished units were to be manufactured during the 2020-2021 fiscal year by Keener Company, the units of raw material needed to be purchased would be 1,350,000 units. 1,360,000 units. 1,320,000 units. 1,330,000 units.
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.
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