1. Selerum Company has P299,000 in accounts receivable on January 1, 2006. Budgeted sales for January are P860,000. Selerum expects to sell 20% of its merchandise for cash. Of the remaining sales, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are: P815,000 P691,000 P471,000 P987,000 2. If there were 30,000 pounds of raw materials on hand on January 1, 60,000 pounds are desired for inventory on December 31, and 180,000 pounds are required for annual production, how many pounds of raw materials should be purchased during the year? 150,000 pounds 240,000 pounds 120,000 pounds 210,000 pounds Ple
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.
1. Selerum Company has P299,000 in
The January cash collections from sales are:
- P815,000
- P691,000
- P471,000
- P987,000
2. If there were 30,000 pounds of raw materials on hand on January 1, 60,000 pounds are desired for inventory on December 31, and 180,000 pounds are required for annual production, how many pounds of raw materials should be purchased during the year?
- 150,000 pounds
- 240,000 pounds
- 120,000 pounds
- 210,000 pounds
Please help me answer these two with a comprehensive solution. Thanks a lot!
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