Down Under Products, Ltd., of Australlia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 84,000 Мay 98, 000 June 124,000 July 97,000 The company is now In the process of preparing a production budget for the second quarter. Past experlence has shown that end-of- month Inventory levels must equal 20% of the following month's unit sales. The Inventory at the end of March was 16,800 units. Required: Prepare a production budget by month and in total, for the second quarter. Down Under Products, Ltd., Production Budget April May June Quarter Budgeted unit sales Total needs Required production in units
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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