Concord manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. February March Quarter 93,200 35,100 34,000 6,800 2,680 2,680 41,900 36,080 95,880 4.820 7,020 6,800 34,880 29,880 91,060 Budgeted unit Sales Budgeted ending inventory Total units required Beginning inventory Budgeted production Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,100 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. (a) Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) Budgeted unit sales Budgeted ending Inventory Total units required Beginning inventory January 24,100 7,020 31,120 4,820 26,300 Budgeted production January 24,100 8,775 32,875 4,020 28,055 February 35,100 8,500 43,600 7,020 36,580 D D D March 34,000 6,800 Quarter 93,200
Concord manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. February March Quarter 93,200 35,100 34,000 6,800 2,680 2,680 41,900 36,080 95,880 4.820 7,020 6,800 34,880 29,880 91,060 Budgeted unit Sales Budgeted ending inventory Total units required Beginning inventory Budgeted production Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,100 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. (a) Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) Budgeted unit sales Budgeted ending Inventory Total units required Beginning inventory January 24,100 7,020 31,120 4,820 26,300 Budgeted production January 24,100 8,775 32,875 4,020 28,055 February 35,100 8,500 43,600 7,020 36,580 D D D March 34,000 6,800 Quarter 93,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Concord manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales.
January February March Quarter
24,100 35,100 34,000 93,200
7,020 6,800 2,680 2,680
31,120
4.820
41,900 36,680 95,880
7,020 6,800 4,820
26,300
34,880 29,880 91,060
Budgeted unit Sales
Budgeted ending inventory
Total units required
Beginning inventory
Budgeted production
Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,100 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending
inventory level from 20 to 25 percent of the next month's sales volume.
(a) Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.)
Budgeted unit sales
Budgeted ending Inventory
Total units required
Beginning inventory
Budgeted production
M
January
24,100
8,775
32,875
4,820
28,055
M
*
February
35,100
8,500
43,600
7,020
36,580
Q
D
X
March
34,000
6,000
Quarter
93,200
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