How many mattresses need to be produced in January 2024? A) 8,800 mattresses B) 11,200 mattresses C) 13,000 mattresses D) 14,200 mattresses
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.
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2024: | |||||
Month | Sales | ||||
January | 10,000 | ||||
February | 14,000 | ||||
March | 13,000 | ||||
April | 16,000 | ||||
Finished goods inventory at the end of December is 3,000 units. Target ending finished goods inventory is 30% of the next month's sales. | |||||
How many mattresses need to be produced in January 2024? | |||||
A) 8,800 mattresses | |||||
B) 11,200 mattresses | |||||
C) 13,000 mattresses | |||||
D) 14,200 mattresses |
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