A company is preparing the production budget for the second quarter. Projected sales (in units) are as follows: April 600 Units May 680 units June 750 units The company policy is to have finished goods stocks of 20% of the next month's projected sales. Assuming that there was no opening stock for April, what should be the production quota for May?
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.
- A company is preparing the production budget for the second quarter.
Projected sales (in units) are as follows:
April 600 Units
May 680 units
June 750 units
The company policy is to have finished goods stocks of 20% of the next month's projected sales. Assuming that there was no opening stock for April, what should be the production quota for May?
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