Perine Company has 2,000 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,000 and 5,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next month’s materials requirements. Prepare the direct materials budget for January. PERINE COMPANY Direct Materials Budget choose the accounting period select an opening name enter a number of units select an item enter a number of pounds select a summarizing line for the first part enter a product of the two previous amounts select between addition and deduction : select an item enter a number of pounds select a summarizing line for the second part enter a subtotal of the two previous amounts select between addition and deduction : select an item enter a number of pounds select a summarizing line for the third part enter a subtotal of the two previous amounts select an item $enter a dollar amount select a closing name $enter a product of the two previous amou
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.
Perine Company has 2,000 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,000 and 5,000 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next month’s materials requirements.
Prepare the direct materials budget for January.
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PERINE COMPANY
Direct Materials Budget choose the accounting period |
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select an opening name
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enter a number of units
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select an item
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enter a number of pounds | |
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select a summarizing line for the first part
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enter a product of the two previous amounts
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|
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select between addition and deduction : select an item
|
enter a number of pounds | |
|
select a summarizing line for the second part
|
enter a subtotal of the two previous amounts
|
|
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select between addition and deduction : select an item
|
enter a number of pounds | |
|
select a summarizing line for the third part
|
enter a subtotal of the two previous amounts
|
|
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select an item
|
$enter a dollar amount
|
|
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select a closing name
|
$enter a product of the two previous amounts
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