Down Under Products' sales budget for the next four months is as follows: April May June July Unit Sales 66,000 80,000 106,000 88,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 13,200 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Desired units of ending finished goods inventory Required production in units Down Under Products, Limited Production Budget April 0 May 0 0 June 0 0 Quarter 0 0
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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