Q1 Glass manufacturing company requires you to calculate and present the budget for the next year from the following Sales : 3.00.000519 Toughened glass Rs. 3,00,000 Bent Toughened glass Rs. 5,00,000 Direct Material cost 60% of sales Direct wages 20 workers @ Rs. 150 P.M. Factory Overheads Indirect Labour - Works Manager Rs. 500 per month, Foreman Rs. 400 per month. Stores and spares 2 % on sales Depreciation machinery Rs. 12,600 Light and power Rs. 5,000 Repairs etc. Rs. 8,000 Other sundries 10% on Daily wages Administration selling and distribution expenses Rs. 14.000 per annum
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.
![Q1
Glass manufacturing company requires you to calculate and present the budget for the next year from the following
Sales :
Toughened glass Rs. 3,00,000
Bent Toughened glass Rs. 5,00,000
Direct Material cost 60% of sales
Direct wages 20 workers @ Rs. 150 P.M.
Factory Overheads
Indirect Labour Works Manager Rs. 500 per month, Foreman Rs. 400 per month.
Stores and spares 2 % on sales
Depreciation machinery Rs. 12,600
Light and power Rs. 5,000
Repairs etc. Rs. 8,000
Other sundries 10% on Daily wages
Administration selling and distribution expenses Rs. 14,000 per annum](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F308cdbfe-7436-4b20-9f31-d8abd27f8eab%2F8a126092-5310-42cb-8975-de662ba7ea49%2Fd8ei8ei_processed.png&w=3840&q=75)
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