Using the table below, prepare the Merchandise Purchases Budget of C Company for June 30, 2019. The budgeted sales will be ₱300,000 in June and ₱320,000 in
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.
Using the table below, prepare the Merchandise Purchases Budget of C Company for June 30, 2019. The budgeted sales will be ₱300,000 in June and ₱320,000 in
July. Cost of goods sold is 70% of sales. The desired ending inventory is 30% of the following
month's cost of goods sold.
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