R. Nano Sdn Bhd (NSB) manufactures two (2) products called SAI and RA2. Below are the budgeted sales for the month of January, 2021. SAI 3,200 50 1,200 1,320 RA2 2,400 75 Budgeted sales (unit) Price per unit (RM) Opening inventory (unit) Desired closing inventory (unit) 1,800 1,980 There are two (2) types of material used in the production which are MAT A and MAT B. The following is the information related to material for the month of January, 2021: MAT B 1,950 MAT A 2,000 10% of the production requirements for the month 4.00 Opening inventory (unit) Desired closing inventory (unit) Price per kg (RM) Material used per unit: SAI RA2 5.00 5 kg 3 kg 3 kg 2 kg
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.
Prepare the following budgets for the month of January 2021
B.Material required for production in quantities
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