Lea Company's sales budget shows the following projections for the year ending Dec. 31, 2021: First quarter 40,000 units Third quarter 50,000 units Second quarter 55,000 units Fourth quarter 45,000 units The quantity of finished goods inventory at the end of each quarter is equal to 40% of the next quarter's budgeted unit sales and is constantly being maintained. What is the total production budget in units for one year ending Dec. 31, 2021 assuming that the estimated sales in units on the first quarter of 2022 is 50,000
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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