How many units should it produce in February if it’s policy on desired ending inventory in units for each month is equal 120% of the following month of Sales
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.
Below is the sales budget in units of Silver Company. How many units should it produce in February if it’s policy on desired ending inventory in units for each month is equal 120% of the following month of Sales :
January 100,000 units
February 120,000 units
March 150,000 units
- 60,000 units
- 120,000 units
- 180,000 units
- 210,000 units
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