Zia & Company sells a single product. Each unit takes 2 pounds of material and costs $3 per pound. Company has prepared a production budget by quarter as follows: First Second Third Fourth Budgeted Production 30,000 60,000 90,000 100,000 The ending inventory at the end of quarter must be equal to 25% of the following quarter’s production needs. 26,000 pounds of material are on hand to start the quarter. Prepare direct materials budget for the ending year. Please dont provide solution in image format thank yu
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.
Zia & Company sells a single product. Each unit takes 2 pounds of material and costs $3 per pound. Company has prepared a production budget by quarter as follows: First Second Third Fourth Budgeted Production 30,000 60,000 90,000 100,000 The ending inventory at the end of quarter must be equal to 25% of the following quarter’s production needs. 26,000 pounds of material are on hand to start the quarter. Prepare direct materials budget for the ending year.
Please dont provide solution in image format thank yu
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