Questions 22 and 23 are based on the following information: Dell Company has budgeted sales of 60,000 units in July; 80,000 units in August; and 120,000 in September. The Company has 6,000 units of finished goods and 49,600 pieces of raw materials on hand on July 1. Each unit of product requires 4 pieces of materials. The desired inventory of finished goods is 10% of the next month’s sales. The desired inventory of materials is 20% of the next month’s production needs. Each raw material can be purchased for P0.50 per material. 130 22. How many pieces of raw materials are purchased in July? a. 248,000 pieces b. 265,600 pieces c. 345,600 pieces d. 355,200 pieces 23. How much would be the purchases in July? a. P 132,800 b. P 177,600 c. P 172,800 d. None
Questions 22 and 23 are based on the following information: Dell Company has budgeted sales of 60,000 units in July; 80,000 units in August; and 120,000 in September. The Company has 6,000 units of finished goods and 49,600 pieces of raw materials on hand on July 1. Each unit of product requires 4 pieces of materials. The desired inventory of finished goods is 10% of the next month’s sales. The desired inventory of materials is 20% of the next month’s production needs. Each raw material can be purchased for P0.50 per material. 130 22. How many pieces of raw materials are purchased in July? a. 248,000 pieces b. 265,600 pieces c. 345,600 pieces d. 355,200 pieces 23. How much would be the purchases in July? a. P 132,800 b. P 177,600 c. P 172,800 d. None
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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Questions 22 and 23 are based on the following information:
Dell Company has budgeted sales of 60,000 units in July; 80,000 units in August; and
120,000 in September. The Company has 6,000 units of finished goods and 49,600 pieces
of raw materials on hand on July 1. Each unit of product requires 4 pieces of materials.
The desired inventory of finished goods is 10% of the next month’s sales. The desired
inventory of materials is 20% of the next month’s production needs. Each raw material can
be purchased for P0.50 per material.
130
22. How many pieces of raw materials are purchased in July?
a. 248,000 pieces
b. 265,600 pieces
c. 345,600 pieces
d. 355,200 pieces
23. How much would be the purchases in July?
a. P 132,800
b. P 177,600
c. P 172,800
d. None
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