Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows: 3/1/20Y9 – 100,000 pounds (Beginning) 3/31/20Y9 – 110,000 pounds (Desired Ending) How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.
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.
Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows:
3/1/20Y9 – 100,000 pounds (Beginning)
3/31/20Y9 – 110,000 pounds (Desired Ending)
How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.
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