Marigold, Inc. has budgeted direct materials purchases of $150500 in March and $239800 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $75700 Purchase of office equipment 36500 Selling and administrative expenses 23300 Depreciation expense 18900 Accounts Receivable write-offs 9500 How much is budgeted cash disbursements for April? $316280 $358480 $204080 $339580
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.
| Wages expense | $75700 |
| Purchase of office equipment | 36500 |
| Selling and administrative expenses | 23300 |
| 18900 | |
| 9500 |
How much is budgeted cash disbursements for April?
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