BEVERLY HILLS manufactures a product requiring 0.5 kilos of platinum per unit. The cost of platinum is approximately P360 per kilos; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: July August September Planned production (units) 1,000 1,100 980 The cost of platinum to be purchased to support August production is:
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.
BEVERLY HILLS manufactures a product requiring 0.5 kilos of platinum per unit. The cost of platinum is approximately P360 per kilos; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:
July August September
Planned production (units) 1,000 1,100 980
The cost of platinum to be purchased to support August production is:
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