Champ Incorporated budgets 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 168 units. May 280 Budgeted sales units Prepare the production budget for May. CHAMP, INCORPORATED Production Budget June 200 Next period budgeted sales units Ratio of inventory to future sales Add: Desired ending inventory Next period budgeted sales units Desired ending inventory units Total required units Less: Beginning inventory units Units to produce May
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
