Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. Gable Manufacturing Production Budget For the Months of January through March January February March Quarter Unit sales 3,900 3,700 3,100 10,700 Plus: Desired ending inventory 370 310 450 450 Total needed 4,270 4,010 3,550 11,150 Less: Beginning inventory 390 370 310 390 Units to produce 3,880 3,640 3,240 10,760 Part 2 Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Gable Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed
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.
Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. Gable Manufacturing Production Budget For the Months of January through March January February March Quarter Unit sales 3,900 3,700 3,100 10,700 Plus: Desired ending inventory 370 310 450 450 Total needed 4,270 4,010 3,550 11,150 Less: Beginning inventory 390 370 310 390 Units to produce 3,880 3,640 3,240 10,760 Part 2 Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. Gable Manufacturing Direct Materials Budget For the Months of January through March January February March Quarter Units to be produced Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed
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