Global limited provides the following budgeted information for the month of January and February. Selling price per unit $12, Variable cost per unit $5. There is no opening inventory in January. Production is expected to be 54000 units for the year. Particulars January $ February $ Fixed production overheads 9000 9000 Fixed administrative costs 800 800 Units Units Sales 3600 5400 Production 4500 4500 Prepare budgeted profit statement for each month using Marginal costing. Clearly show opening and closing inventory for each month. Calculate the production overhead absorption rate per unit. Prepare budgeted profit statement for each month using Absorption costing. Clearly show opening and closing inventory for each month.
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.
ASAP!!
Global limited provides the following budgeted information for the month of January and February.
Selling price per unit $12, Variable cost per unit $5. There is no opening inventory in January. Production is expected to be 54000 units for the year.
Particulars January $ February $
Fixed production
Fixed administrative costs 800 800
Units Units
Sales 3600 5400
Production 4500 4500
- Prepare budgeted profit statement for each month using Marginal costing. Clearly show opening and closing inventory for each month.
- Calculate the production overhead absorption rate per unit.
Prepare budgeted profit statement for each month using Absorption costing. Clearly show opening and closing inventory for each month.
Step by step
Solved in 2 steps
