The following facts are known: . . . . The total pounds needed for production are 2 times the units to be produced. The desired ending direct materials inventory in pounds is 20% of the total pounds needed for production. The beginning direct materials inventory in pounds is equal in number to 10% of the units to be produced. Cost per pound is $5. The total cost of the direct materials purchases is $1,060,300. Prepare a direct materials budget for the period. Units to be produced Direct materials per unit Total pounds required for production Add: Desired ending direct materials inventory Total materials required Less V Cost per pound: Beginning direct materials inventory
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.
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