Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 2,400 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

Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 2,400 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EA: One Device makes universal remote controls and expects to sell 500 units in January, 800 in...

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Concept explainers

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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Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units; October, 5,000 units;
November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the
next month's unit sales. At the end of August, the company had 2,400 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

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