At the beginning of the year, Cullumber had beginning inventory of 1680 scooters. Cullumber estimates it will sell 4200 units during the first quarter of the current year, with a 10% increase in sales each quarter. It is Cullumber’s policy to maintain an ending inventory equal to 20% of the next quarter’s budgeted sales. Each scooter costs $84 to produce and sold for $126. How much is the budgeted sales revenue for the third quarter of the current year? a. $426888. b. $640332. c. $582120. d. $352800.
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.
At the beginning of the year, Cullumber had beginning inventory of 1680 scooters. Cullumber estimates it will sell 4200 units during the first quarter of the current year, with a 10% increase in sales each quarter. It is Cullumber’s policy to maintain an ending inventory equal to 20% of the next quarter’s budgeted sales. Each scooter costs $84 to produce and sold for $126. How much is the budgeted sales revenue for the third quarter of the current year?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
