equired: Production budget Raw Material budget consumption Raw Material purchase budget
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 Armstar Company prepared following figures as a basis for its budget for 2020.
Product Sales Price Material Required
A B
Tribal 80,000 1.5 1Kg 2Kg
Poly 40,000 2.0 2 -
Powder 100,000 1 1 3
Raw Material Inventory:
Jan1 Dec 31 Price
A 10,000 12,000 0.20
B 12,000 15,000 0.10
Finish goods inventory:
Labour hour per 1000 units
Trible 5,000 6,000 50
Poly 2,000 1,000 125
Powder 10,000 8,000 12.5
Required:
- Production budget
- Raw Material budget consumption
- Raw Material purchase budget
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