A merchandising company i working on their Inventory Purchase Budget to determine how much inventory will need to be purchased for the month of July. The following information has been gathered for this budget. Prepare an Inventory Purchase Budget for the month of July and for your answer below, enter the dollar value of how much this company would expect in Inventory Purchases for this month. (Round all calculations to a level that makes the most sense for this question. Enter your final answer rounded to the nearest whole dollar/input code: 0) Budgeted Sales Cost of Goods Sold Inventory requirement June: $20,672 July: $26,904 August: $39,879 33% of Sales End each month with 17% of the following month's budgeted Cost of Goods Sold. (This requirement is expected for both the beginning and end of July.)
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.
Budgeting is a method of computing future sales and expenses on the basis of past performance. Budgeting is a very important technique for calculating sales, collections, expenses and payments.
It helps to restrict business expenses from being overutilized. It also helps to make borrowing decisions to maintain the minimum required balance.
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