Sohar Manufacturing plans to produce 22000 units, and 20000 units, respectively, in October, and November. Each of these units requires 3 units of part no. 879. Sohar has 29000 units of part no. 879 in stock on September 30. Management desires to maintain an ending raw-material inventory equal to 60% of the following month's production usage What will be the direct-material purchases budget for October in units.
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.
Sohar Manufacturing plans to produce 22000 units, and 20000 units, respectively, in October, and November. Each of these units requires 3 units of part no. 879. Sohar has 29000 units of part no. 879 in stock on September 30.
Management desires to maintain an ending raw-material inventory equal to 60% of the following month's production usage
What will be the direct-material purchases budget for October in units.
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