3. Merchandise Purchases Budget CIT Merchandising has budgeted the following sales for the 2nd quarter of 2021: Other budgeted estimates are: . April P 123,500 May 156,000 June 208,000 All merchandises are to sell at its invoice cost plus 30% mark-up. Beginning inventories of each month are budgeted at 40% of that particular month's projected cost of goods sold. REQUIRED: Determine the projected amount for: A) Merchandise purchases in April. B) Merchandise purchases in May.
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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