The following data is available for a one month period: Deluxe Plain Quantity produced 10,000 12,000 Direct materials $50,000 $48,000 Conversion Costs: Cutting $22,000 $10,000 $12,000 Sewing $22,000 $10,000 $12,000 Printing $ 5,000 $5,000 $0 Total $ 49,000 $75,000 $72,000 How much does a Plain sweatshirt cost to manufacture?
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.
Sweatshirts, Inc. Makes two types of sweatshirts: plain and deluxe. Both types of sweatshirts go through two operations: cutting and sewing. The deluxe sweatshirts go through a third operation that prints emblems and words on them. The deluxe sweatshirts also have more expensive material used on them. After manufacture, sweatshirts are warehoused for sale to department stores.
The following data is available for a one month period:
|
|
Deluxe |
Plain |
|
Quantity produced |
10,000 |
12,000 |
|
Direct materials |
$50,000 |
$48,000 |
|
Conversion Costs: |
|
|
|
Cutting $22,000 |
$10,000 |
$12,000 |
|
Sewing $22,000 |
$10,000 |
$12,000 |
|
Printing $ 5,000 |
$5,000 |
$0 |
|
Total $ 49,000 |
$75,000 |
$72,000 |
How much does a Plain sweatshirt cost to manufacture?
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