Kirby Soups has just made its sales forecasts, and its marketing department estimates that the company will sell 4,056,000 units of its vegetable soup during the coming year. In the past, management has maintained inventories of finished goods at approximately two week's sales. The inventory at the start of the budget period is 125,000 units. Sales occur evenly throughout the year. Note: Assume 52 weeks in a year. Required: Estimate the production level of vegetable soup required for the coming year to meet these objectives. Note: Do not round intermediate calculations. Required production units
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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