X Corp has budgeted sales (in units) for the upcoming quarter as follows: Jan is 15,000; Feb is 18,000 and March is 16,500 units. The ending FG inventory for each month equals 50% of the next months budgeted sales. Additionally, 3 pounds of DM (Direct Materials) are required to produce each FG (Finished Goods) unit processed. The ending DM inventory for each month equals 200% of next month's production requirements. If DM cost P4.00 per kilos and must be paid for in the month of purchased, the budgeted DM purchases (in pesos) for January are? choices: 96,584 102,346 98,182 None of the
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.
X Corp has budgeted sales (in units) for the upcoming quarter as follows: Jan is 15,000; Feb is 18,000 and March is 16,500 units. The ending FG inventory for each month equals 50% of the next months budgeted sales. Additionally, 3 pounds of DM (Direct Materials) are required to produce each FG (Finished Goods) unit processed. The ending DM inventory for each month equals 200% of next month's production requirements. If DM cost P4.00 per kilos and must be paid for in the month of purchased, the budgeted DM purchases (in pesos) for January are?
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