Masterson Company's budgeted production calls for 64,000 units in April and 60,000 units in May of a key raw material that costs $1.95 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 12,800 unit. What is the budgeted materials needed in units for April?
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.
Masterson Company's budgeted production calls for 64,000 units in April and 60,000 units in May of a key raw material that costs $1.95 per unit. Each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. The April 1 inventory for this material is 12,800 unit. What is the budgeted materials needed in units for April?
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