I. The following costs were incurred by a baseball glove manufacturer for the month of April. a. Leather used to make a baseball glove - $15,000 b. Cost of endorsement from a professional baseball player - $1,000 c. Office supplies used at the company headquarters - $1,200 d. Ink used to print a player's autograph on the baseball glove - $400 e. Salary of the vice president of the company - $3,000 Analyze the above costs and compute for the following: 1. Direct materials 2. Direct labor 3. Factory overhead 4. Prime costs 5. 6. Product costs 7. Period costs Conversion costs
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.
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