Waterway Company has 2,040 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,080 and 5,100 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $ 6. Management desires an ending inventory equal to 25% of next month's materials requirements. Prepare the direct materials budget for January. WATERWAY COMPANY Direct Materials Budget
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.
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