CO, SRL anticipates the following sales in the given months: March 42,000 units April 59,000 units May 49,000 units June 55,000 units July 52,000 units Company policy is to maintain an ending finished goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in 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.
KCO, SRL anticipates the following sales in the given months:
| March | 42,000 units |
| April | 59,000 units |
| May | 49,000 units |
| June | 55,000 units |
| July | 52,000 units |
Company policy is to maintain an ending finished goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in May?
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