What is the figure to be included in the cash budget for June in respect of payments for purchases?
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.
Each unit of product Zeta requires 3 kg of raw material and 4 direct labour hours. Material costs $2 per kg and
the direct labour rate is $7 per hour.
The production budget for Zeta for April to June is as follows.
April May June
Production units 7,800 8,400 8,200
16.17 Raw material opening inventories are budgeted as follows.
April May June
3,800 kg 4,200 kg 4,100 kg
The closing inventory budgeted for June is 3,900 kg.
Material purchases are paid for in the month following purchase. What is the figure to be included in the
A $25,100
B $48,800
C $50,200
D $50,600
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