odin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year Ox1. Four units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 44,000 12,000 90,000 49,000 12,000 76,000 equired: If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture uring the year. . If 514,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be urchased. 1. Required production in units 2. Raw material purchases in units
odin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year Ox1. Four units of raw material are required to produce each unit of finished product. Raw material Work in process Finished goods January 1 December 31 44,000 12,000 90,000 49,000 12,000 76,000 equired: If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture uring the year. . If 514,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be urchased. 1. Required production in units 2. Raw material purchases in units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannined for the year
20x1. Four units of raw material are required to produce each unit of finished product.
January 1 December 31
44,000
49,000
12,000
76,000
Raw material
Work in process 12,000
Finished goods 90,000
Required:
1. If Bodin Company plans to sell 452,000 units during the year, compute the number of units the firm would have to manufacture
during the year.
2. If 514,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be
purchased.
1. Required production in units
2. Raw material purchases in units
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