1.Compute for the units produced for the second quarter. 2.Compute for the units produced for the fourth quarter.
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.
C. Bedtime Company produces a variety of pillows for catalog sales. Two popular types are the standard pillow and the neck roll. The standard pillow sells for $4, and the neck roll sells for $3. Projected sales of the two types of pillows for the coming four quarters are as shown in the table. In the factory, the production supervisor has received the projected sales figures and gathered information needed to compile production budgets. He found that 300 standard pillows and 170 neck rolls were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for standard pillows and 10 percent of next quarter’s sales for neck rolls.
1.Compute for the units produced for the second quarter.
2.Compute for the units produced for the fourth quarter.
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