(a) Bara Enterprise manufactures product Alpha. The following information is for the year 2021: Table 2: Finished Goods Data for the Product Alpha Estimated sales Perak Details Kelantan Price per unit Expected closing stock Opening stock Details Additional information: Opening stock Expected closing stock Cost per unit Amount Table 3: Raw Materials Data Material A 20,000 units 30,000 units RM2.00 20,000 units 40,000 units RM16.00 6,000 units 4,000 units Material B 25,000 units 40,000 units RM4.00 Each unit of product Alpha required 4 units of Material A and 2 units of Material B.
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.
Analyse a sales budget (in unit and value).
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