Magnolia, Inc. manufactures bedding sets. The budgeted production is for 10,200 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,070 yards with the desired ending balance of 6,400 yards of material. If the material costs $5.10 per yard, determine the materials budget for the year. $fill in the blank 1
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.
Magnolia, Inc. manufactures bedding sets. The budgeted production is for 10,200 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,070 yards with the desired ending balance of 6,400 yards of material. If the material costs $5.10 per yard, determine the materials budget for the year.
$fill in the blank 1
Formula:
Total Required materials = Budgeted production units x Each material requires yards.
Multiplying each material requires yards with Budgeted production units derives the Total required materials.
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