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Items on a Master Budget: Sales, Purchases, Operating Expenses, Capital and Cash Budgets

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Once individual annual budgets have been prepared, they are combined into a larger budget called the master budget. Some of the budgets included in the master budget are sales, purchases, operating expenses, capital, and cash budgets.

Choose a company in the manufacturing industry, and describe some items that one would expect to find on each of the above-listed individual budgets.

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Solution Summary

Your tutorial gives you 27 ideas of what might be on these budgets, sorted by relevant budget. The posting does not actually compute or show a master budget (consult your text for this).

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For these budgets you might find:

Sales
- Monthly or quarterly expected unit sales by product
- Expected prices per product

Purchases
- Production levels by product
- Raw materials needed for each product
- Safety stock levels (ending inventory) required for each ...

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