Blue Wave Company budgets the following unit sales for the next four months: September, 3,500 units: October, 4.200 units: November, 6,100 units; and December, 7700 units. The company's policy is to maintain finished goods inventory equal to 50% of the next month's unit sales. At the end of August, the company had 1,750 finished units in inventory Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September October November Next period budgeted sales units Desired ending inventory units Total required units Units to produce
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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