Sherman has budgeted sales for the upcoming quarter as follows: April May June Units 1,600 1,900 1,750 The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $5 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are: rev: 02_23_2021_QC_CS-254210 Multiple Choice $17,500. $40,500. $38,250. $22,950.
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.
Sherman has budgeted sales for the upcoming quarter as follows:
| April | May | June | |
| Units | 1,600 | 1,900 | 1,750 |
The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $5 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are:
rev: 02_23_2021_QC_CS-254210
-
$17,500.
-
$40,500.
-
$38,250.
-
$22,950.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
