Below is the sales budget (in units) of ABS Co. for the second half of 2021: July: 100,000 August: 90,000 September: 90,000 October: 80,000 November: 70,000 December: 70,000. The company's projection is to have inventory on hand at end of each month equal to 70% of sales of next month. It is assumed that inventory at end of June 2021 will meet this requirement and that 80,000 units will be sold in Jan. 2022.What is the total production budget in units for the 6 months' period ending December 31,2021? 479,000 486,000 524,000 556,000
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.
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