Champ, Inc., predicts the following sales in units for the coming two months. Each month's ending inventory of finished units should be 60% of the next month's sales. The April 30 finished goods inventory is 156 units. May June 290 260 Sales in units Compute budgeted production (in units) for May. CHAMP, INC. Production Budget For Month Ended May 31 Required units of available production Units to be produced
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.
Champ, Inc., predicts the following sales in units for the coming two months. Each month’s ending inventory of finished units should be 60% of the next month’s sales. The April 30 finished goods inventory is 156 units.
| May | June | |||
| Sales in units | 260 | 290 | ||
Compute budgeted production (in units) for May.
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