Wright & Boyle Company budgeted the following production in units for the second quarter of the year: April 50,000 May 43,000 June 47,000 Each unit requires five pounds of raw material. Wright & Boyle's policy is to have 20% of the following month's production needs for materials in inventory. This policy was met in March. Raw materials purchases budgeted for May in pounds equal: Group of answer choices 219,000 pounds. 202,400 pounds. 45,600 pounds. 171,600 pounds. 225,600 pounds.
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.
|
April |
50,000 |
|
May |
43,000 |
|
June |
47,000 |
Each unit requires five pounds of raw material. Wright & Boyle's policy is to have 20% of the following month's production needs for materials in inventory. This policy was met in March. Raw materials purchases budgeted for May in pounds equal:
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