Hiking General Store prepared the following sales budget: MONTH BUDGETED SALES MARCH RM4,000.00 APRIL RM14,000.00 MAY RM12,000.00 JUNE RM16,000.00 The expected gross profit rate is 30% and the inventory at the end of February was RM14,000. Desired inventory levels at the end of the month are 10% of the next month Cost Of Good Sold. Compute the total purchase budgetedfor April for Hiking General Store.
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.
Hiking General Store prepared the following sales budget:
| MONTH | BUDGETED SALES |
| MARCH | RM4,000.00 |
| APRIL | RM14,000.00 |
| MAY | RM12,000.00 |
| JUNE | RM16,000.00 |
The expected gross profit rate is 30% and the inventory at the end of February was RM14,000.
Desired inventory levels at the end of the month are 10% of the next month Cost Of Good Sold.
Compute the total purchase budgetedfor April for Hiking General Store.
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