In a Master Budget, the Production Budget Units of Goods to be manufactured = a. Beginning finished goods inventory + budgeted unit sales - targeted ending finished goods inventory b. Targeted ending finished goods inventory + beginning finished goods inventory - budgeted unit sales c. Budgeted unit sales + targeted ending finished goods inventory - beginning finished goods inventory d. Budgeted unit sales + targeted ending finished goods inventory + beginning finished goods inventory
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.
In a
| a. |
Beginning finished goods inventory + budgeted unit sales - targeted ending finished goods inventory |
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| b. |
Targeted ending finished goods inventory + beginning finished goods inventory - budgeted unit sales |
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| c. |
Budgeted unit sales + targeted ending finished goods inventory - beginning finished goods inventory |
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| d. |
Budgeted unit sales + targeted ending finished goods inventory + beginning finished goods inventory |
In a Master Budget, the FIFO Cost of Direct Materials to be Used, for each type of material =
| a. |
(Beg. Units * Beg. Unit Cost) + (Units Used in Production * current Unit Cost) |
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| b. |
(Beg. Units * Beg. Unit Cost) + ((Units Used in Production - Beg. Units) * current Unit Cost) |
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| c. |
(Units Used in Production * Beg. Unit Cost) |
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| d. |
(Units Used in Production * current Unit Cost) |
In a Master Budget, where the
| a. |
The Variable Manufacturing Overhead divided by Total Hours of Direct Labor |
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| b. |
The sum of Variable and Fixed Manufacturing Overhead divided by Total Hours of Direct Labor |
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| c. |
Total |
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| d. |
The Variable Manufacturing Overhead Rate divided by the Direct Labor Rate |
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