Bonita, Inc., makes and sells drum sets. Nick Ross, controller, is responsible for preparing the master budget. The sales manager has given Nick the following sales forecast for the coming months. April May June July Forecasted unit sales 11,600 12,160 8,570 9,580 Bonita expects to have 5,800 drum sets in ending inventory on March 31. The company's policy is to carry 50% of the following month's projected sales in ending inventory. Prepare Bonita's production budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275.) April May June Quarter Budgeted Unit Sales Budgeted ending inventory Total units required Beginning inventory Budgeted production
Bonita, Inc., makes and sells drum sets. Nick Ross, controller, is responsible for preparing the master budget. The sales manager has given Nick the following sales forecast for the coming months. April May June July Forecasted unit sales 11,600 12,160 8,570 9,580 Bonita expects to have 5,800 drum sets in ending inventory on March 31. The company's policy is to carry 50% of the following month's projected sales in ending inventory. Prepare Bonita's production budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275.) April May June Quarter Budgeted Unit Sales Budgeted ending inventory Total units required Beginning inventory Budgeted production
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
Bonita, Inc., makes and sells drum sets. Nick Ross, controller, is responsible for preparing the master budget . The sales manager has given Nick the following sales forecast for the coming months.
Bonita expects to have 5,800 drum sets in ending inventory on March 31. The company's policy is to carry 50% of the following month's projected sales in ending inventory.
Prepare Bonita's production budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275.)
| April | May | June | July | |||||||
| Forecasted unit sales | 11,600 | 12,160 | 8,570 | 9,580 |
Bonita expects to have 5,800 drum sets in ending inventory on March 31. The company's policy is to carry 50% of the following month's projected sales in ending inventory.
Prepare Bonita's production budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275.)
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Total units required
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Beginning inventory
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Budgeted production
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