13-29. Estimate Inventory Levels Using Production Budgets Flex-Tite manufactures plastic parts. The inventory policy at Flex-Tite is to hold inventory equal to 130 percent of the average monthly sales for its main product. Sales for the following year are expected to be 900,000 units. Based on the inventory policy, the budget calls for the production of 930,000 units. Required What is the beginning inventory of the component?
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.
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