Data Set: Management expects sales of 1,000 units in Q1, increasing by 100 units for each successive quarter. The selling price of one unit is $25. Management intends to have 20% of units in ending inventory at the end of each period. [Beginning Inventory for Q1 is 200, Ending inventory of Q4 is 320 units] Labor requirements is 4 hours per unit, and costs $20 per hour. Prepare: 1. Sales Budget 2. Production Budget 3. Labor Budget
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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