Wildhorse Company has accumulated the following budget data for the year 2022: Sales: 32,100 units; unit selling price $77 Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, 3 hours at $12 per hour; and manufacturing overhead, $6 per direct labour hour Inventories (raw materials only): beginning, 10.300 kg; ending, 14.500 kg Raw materials cost: $5 per kilogram Selling and administrative expenses: $196,000 Income taxes: 30% of income before income taxes 1. 2 3 4. 5.
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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