Sheffield, Inc. makes and sells serving trays. Each tray uses 1/2 pound of plastic, Budgeted production of trays in units for the next three months is as follows: April May Budgeted production 21,000 23,100 June 25,200 The company wants to maintain monthly ending inventories of plastic equal to 30% of the following month's budgeted production needs. The cost of plastic is $2 per pound. Prepare a direct materials purchases budget for the month of May. (Round pounds of plastic needed for each bucket to 1 decimal place and cost per pound to two decimal places) $
Sheffield, Inc. makes and sells serving trays. Each tray uses 1/2 pound of plastic, Budgeted production of trays in units for the next three months is as follows: April May Budgeted production 21,000 23,100 June 25,200 The company wants to maintain monthly ending inventories of plastic equal to 30% of the following month's budgeted production needs. The cost of plastic is $2 per pound. Prepare a direct materials purchases budget for the month of May. (Round pounds of plastic needed for each bucket to 1 decimal place and cost per pound to two decimal places) $
Chapter7: Budgeting
Section: Chapter Questions
Problem 5EA: Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700...
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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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Transcribed Image Text:Sheffield, Inc. makes and sells serving trays. Each tray uses 1/2 pound of plastic. Budgeted production of trays in units for the next
three months is as follows:
April
May
21,000 23,100
June
25,200
Budgeted production
The company wants to maintain monthly ending inventories of plastic equal to 30% of the following month's budgeted production
needs. The cost of plastic is $2 per pound.
Prepare a direct materials purchases budget for the month of May. (Round pounds of plastic needed for each bucket to 1 decimal place and
cost per pound to two decimal places)
1110
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