Filling in for his super production budget. Ha inventory each month 6,300, respectively. A- production budget tha =
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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Filling in for his supervisor, who suddenly left the company, Edward quickly evaluated the situation to wrap up his department's
production budget. He determined the department generally tried to hold 10% of the following month's budgeted sales in ending
inventory each month. From the sales manager, he learned that budgeted unit sales for the next 4 months are 4,550, 4,950, 5,800, and
6,300, respectively. Assuming the department currently holds enough inventory to be in compliance with the standard, show the
production budget that Edward would assemble for the next quarter.
Month 1
4550
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Month 2
4950
Month 3
5800
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Attempts: 0 of 1 used
Quarter
15300
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