Budgeting for Planning || BBS 2nd Year Account Chapter 15 || Sales, Production, Merchandize Budget

To Study IELTS/PTE/SAT at Gurubaa International Consultancy, Fill the form below(Both Online and offline available) : forms.gle/HzFK... This episode from BBS 2nd year's Cost and Management Accounting is based on Chapter 15 titled "Budgeting for Planning". This video is also useful for BBA, BBM, MBS and other management faculty courses. Here, we have explained the concept and format of preparing:
Sales Budget
Production Budget
Raw Material Consumption Budget
Raw Material Purchase Budget
Merchandize Purchase Budget
Sales Budget is constructed by multiplying Sales unit with Selling Price per Unit (SPPU). Similarly, Production Budget shows the production units in various period which is calculated by adding closing stock (ending inventory) with sales unit and deducting opening stock (beginning inventory). Material Consumption Budget is prepared by multiplying production unit with the material required for one unit. Similarly, we calculate raw material purchase by adding closing stock with material consumption (units) and deducting opening stock and multiplying the material purchase units with the purchase rate. At last, we have explained the merchandize purchase budget where we calculate cost of goods sold (COGS) by deducting Gross Profit from Sales Revenue. Then, we add closing stock and deduct opening stock to calculate the final merchandize purchase for each period.
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