GIVEN: Below is a Production Budget for the third quarter of a company's fiscal year that includes forecasted monthly unit sales. Additionally, management wishes to have 20% of the following month's unit sales as Desired Ending Inventory. July 30,000 Aug Sep Q3 Oct Unit Sales: 32,000 34,000 38,000 Desired Ending Inventory: Total Required Units: Beginning Inventory: 6,000 No. of Units to be Produced: 22) The Desired Beginning Inventory for August is: A) 6,000 B) 6,400 C) 6,800 D) 7,000 23) The number of units to be produced in September is: A) 34,800 B) 38,800 C) 41,600 D) 46,400
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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