ABC Company's budgeted sales for June, July, and August are 15,200, 19,200, and 17,200 units, respectively. ABC requires 25% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,800 units. Required: Calculate the number of units to be produced in June and July. June July Number of units
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.
![ABC Company's budgeted sales for June, July, and August are 15,200, 19,200, and 17,200 units, respectively. ABC requires 25% of the
next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,800
units.
Required:
Calculate the number of units to be produced in June and July.
June
July
Number of units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea5fc15e-96a1-4aa0-99b9-3d4cb5ff6433%2F6c61c522-4167-4d57-927c-062e6f9929d2%2F4z995ie_processed.png&w=3840&q=75)
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