In September 2019, the budget committee of Jason Company assembles the following data: 1. Expected Sales 2 3. 4. October $1,800,000 1,700,000 December 1,600,000 Cost of goods sold is expected to be 60% of sales. Desired ending merchandise inventory is 20% of the next month's cost of goods sold. The beginning inventory at October 1 will be the desired amount. November Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold sch JASON COMPANY Budgeted Income Statement For the Month Ended October 31, 2019
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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