The Molson Company had budgeted production for the year as follows: Quarter 1 2 3 4 Production in units 11,100 13,100 19,000 15,100 five pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 5,100 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the second quarter would be: Multiple Choice 68,450 lbs. 63,500 lbs. 65,500 lbs. 73,700 lbs.
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 Molson Company had budgeted production for the year as follows:
| Quarter | 1 | 2 | 3 | 4 |
| Production in units | 11,100 | 13,100 | 19,000 | 15,100 |
five pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 5,100 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the second quarter would be:
Multiple Choice
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68,450 lbs.
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63,500 lbs.
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65,500 lbs.
-
73,700 lbs.
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