The following are budgeted data: Sales (units) Production (units) July 5,000 18,000 August 20,000 19,000 September 18,000 16,000
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.
The following are budgeted data:
| Sales (units) | Production (units) | |
|
July |
5,000 | 18,000 |
| August | 20,000 | 19,000 |
| September | 18,000 |
16,000 |
Two pound of material are required for each finished uit. the inventory of materials at the end of each month should equal 35% of the following month's producion needs. puchases of raw materials for august should be:
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