Allegan Company produces computer processors. Sales budget for the next four months is as follows: March 10,700 units, April 13,600, May 16,200 and June 21,200. Allegan Company’s ending finished goods inventory policy is 10% of the following month’s sales. March 1 beginning inventory is projected to be 1,070 units. How many units of processors will be budgeted to be produced in April? Multiple Choice 13,600 13,340 16,580 13,860
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.
Allegan Company produces computer processors. Sales budget for the next four months is as follows: March 10,700 units, April 13,600, May 16,200 and June 21,200. Allegan Company’s ending finished goods inventory policy is 10% of the following month’s sales. March 1 beginning inventory is projected to be 1,070 units.
How many units of processors will be budgeted to be produced in April?
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13,600
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13,340
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16,580
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13,860
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