Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in units) 70,500 ? 82,500 Budgeted raw materials purchases (in pounds) 195,561 159,100 161,300 Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the following month's production needs. The company is expected to have 44,415 pounds of raw materials on hand on January 1. Budgeted production for February should be:
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.
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
| January | February | March | |
| Budgeted production (in units) | 70,500 | ? | 82,500 |
| Budgeted raw materials purchases (in pounds) | 195,561 | 159,100 | 161,300 |
Three pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 21% of the following month's production needs. The company is expected to have 44,415 pounds of raw materials on hand on January 1. Budgeted production for February should be:
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