Magnolia, Inc., manufactures bedding sets. The budgeted production is for 25,500 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,380 yards with the desired ending balance of 5,000 yards of material. If the material costs $7.40 per yard, determine the materials budget for the year.
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.
Magnolia, Inc., manufactures bedding sets. The budgeted production is for 25,500 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,380 yards with the desired ending balance of 5,000 yards of material. If the material costs $7.40 per yard, determine the materials budget for the year.
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