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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