Master Budget

• When the functional budgets have been completed, the budget committee
will prepare a Master Budget for the target of the concern. Accordingly a
budget which is prepared incorporating the summaries of all functional
budgets. It comprises of budgeted profit and loss account, budgeted
balance sheet, budgeted production, sales and costs.

Dr. B. Janarthanan, DoMS, NITT 1

 Exercise 1
• Saints Row, a glass manufacturing company requires you to
calculate and present the budget for the next year from the
following information :
o Toughened Glass - ₹ 2,00,000
o Bent Toughened Glass - ₹ 3,00,000
o Direct Material Cost - ₹ 60% of Sales
o Direct Wages – 10 workers @ ₹100/month
o Factory Overheads:
• Indirect Labour - ₹ 300/month
• Work Manager - ₹ 200/month
• Stores and Spares - ₹ 6,000
• Light and Power - ₹ 2,000
• Repairs and Maintenance - ₹ 4,000
• Other Sundries – 10% on Direct Wages
o Administration, Selling and Distribution expenses Rs. 7,000 per year.

Dr. B. Janarthanan, DoMS, NITT 2