The Home Office in Manila shipped merchandise costing P30,000 to Baguio Branch and paid for the freight charges of P1,200. The home office billed the branch at 105% of cost. Baguio Branch was subsequently instructed to transfer the merchandise to Laoag Branch wherein Baguio Branch paid for P500 freight. If the shipment was made directly from Manila to Laoag, the freight cost would have amounted to P1,300. Determine the amount debited to Laoag Branch on the books of the home office
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.
The Home Office in Manila shipped merchandise costing P30,000 to Baguio Branch and paid for the freight charges of P1,200. The home office billed the branch at 105% of cost. Baguio Branch was subsequently instructed to transfer the merchandise to Laoag Branch wherein Baguio Branch paid for P500 freight. If the shipment was made directly from Manila to Laoag, the freight cost would have amounted to P1,300.
Determine the amount debited to Laoag Branch on the books of the home office.
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