Karen Company has 22,800 beginning finished goods units. Budgeted sales units are 182,400. If management desires 17,100 ending finished goods units, what are the required units of production? Required units of production
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.
Karen Company has 22,800 beginning finished goods units. Budgeted sales units are 182,400. If management desires 17,100 ending finished goods units, what are the required units of production?
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Required units of production
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Production Budget :— This budget is prepared to estimate the number of required unit to be produced during the period.
Units to be produced
= Sales Units + Ending Finished Goods inventory — Beginning Finished Goods Inventory
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