Janet Lawerence the controller for Toy Bike Maker Inc is preparing a production budget for the yea The company's policy is 1. maintain a finished goods inventory equal to one-half of the following month's sales. 2. Sales of 7,000 toy bikes are budgeted for April. 3. Complete the monthly production budget for the first quarter January February March 4,000 6,000 5,000 4. Sales in units Add desired units of ending finished goods inventory Desired total units Less desired units of beginning finished goods inventory Total production units 2,000 7,000 ? 4,500 ? ? ti
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.
Step by step
Solved in 3 steps
