The following extract of costing information relates to commodity “A’ for the half year 31st December 2020 1. Purchase of raw materials 1,20,000 48,000 1,00,000 1,440 Seling and distribution overheads are 1 per ton sold 16,000 tons of commodity were produced during the period . 2. Works Overheads 3. Direct wages 4. Carriage on Purchases 5. Stock(1st July, 2020 ) Raw materials Finished products(1,000 tons) 6. Stock(31st Dec, 2020) Raw materials 20,000 16,000 You are to ascetain (i) Cost of raw materials used. (ii) Cost of output for the period, (iii) Cost of sales (iv) Net profit for the period, and (vi) Net profit per ton of the commodity . 22, 240 32,000 Finished products(2,000 tons) Works Overheads (1st july 2020) 4,800 Works Overheads (31st Dec.. 2020) 16,000 Sales-Finished Products 3,00,00
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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