Units to produce ZORTEK CORPORATION Direct Materials Budget Materials needed for production (Pounds) Total materials required (Pounds) Materials to purchase (Pounds) Cost of direct materials purchases January units pounds pounds pounds pounds pounds 0 pounds per pound
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.
![Zortek Corporation budgets production of 490 units in January and 290 units in February, Each finished unit requires five pounds of
material Z, which costs $4 per pound. Each month's ending inventory of material Z should be 40% of the following month's budgeted
production. The January 1 inventory has 980 pounds of material Z. Prepare a direct materials budget for January.
Units to produce
ZORTEK CORPORATION
Direct Materials Budget
Materials needed for production (Pounds)
Total materials required (Pounds)
Materials to purchase (Pounds)
Cost of direct materials purchases
.
January
units
pounds
pounds
pounds
pounds
pounds i
0 pounds
per pound](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F738c5608-f308-48c8-9cb4-8062219286c9%2Ffc206a04-6519-4d9f-897b-0e6744836684%2Fhyuri7_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)