Cullumber Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $3900000 $3960000 $4050000 Cash sales 390000 420000 510000 Total sales $4290000 $4380000 $4560000 All merchandise is marked up to sell at its invoice cost plus 30%. Merchandise inventories at the beginning of each month are at 20% of that month's projected cost of goods sold. Merchandise purchases for July are anticipated to be
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.
Cullumber Company, a wholesaler, budgeted the following sales for the indicated months:
|
June |
July |
August |
||||
| Sales on account |
$3900000 |
$3960000 |
$4050000 |
|||
| Cash sales |
390000 |
420000 |
510000 |
|||
| Total sales |
$4290000 |
$4380000 |
$4560000 |
All merchandise is marked up to sell at its invoice cost plus 30%. Merchandise inventories at the beginning of each month are at 20% of that month's projected cost of goods sold.
Merchandise purchases for July are anticipated to be
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