(a(i))[2]
Explain what is meant by the term 'master budget'.
(a(ii))[2]
State two elements of a master budget other than production and purchases.
(b(i))[4]
Prepare a production budget, in units, for February and March 2020.
(b(ii))[6]
Prepare a purchases budget, in kilos, for February and March 2020.
(c)[4]
Calculate the budgeted cost of direct materials consumed in February 2020.
(d)[4]
Explain the effect on profit of using FIFO and average cost (AVCO) when direct materials prices are rising.
(e)[3]
Discuss whether the marketing manager’s opinion is correct or incorrect. Justify your response.