Preston, Incorporated, manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 270 units in July and 410 units in August. Each unit requires 11 feet of wood at a cost of $0.90 per foot. Preston wants to always have 250 feet of wood on hand in materials inventory. Compute Preston's direct materials purchases budget for July and August.
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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