In May 2021, Cherry Company relocated an employee from the Manila head office to a branch in Zamboanga City. At the end of the reporting period on June 30, 2021, the costs are estimated at P350,000 analyzed as follows: Cost for shipping goods P 30,000 Airfare 10,000 Temporary accommodation cost for July and August 80,000 Temporary accommodation cost for May and June 90,000 Reimbursement for lease break cost paid in July (lease was terminated in May) 20,000 Reimbursement for cost of living increases for the period May 1, 2021 to May 1, 2022 120,000 1. What amount should be recognized as provision for relocation costs on June 30, 2021?
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.
Cost for shipping goods P 30,000
Airfare 10,000
Temporary accommodation cost for July and August 80,000
Temporary accommodation cost for May and June 90,000
Reimbursement for lease break cost paid in July
(lease was terminated in May) 20,000
Reimbursement for cost of living increases for the
period May 1, 2021 to May 1, 2022 120,000
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