Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales June Total
Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June. Begin by preparing a sales budget for April, May, and June. Lugo Company Sales Budget April, May, and June April May Budgeted packages to be sold Sales price per package Total sales June Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
will be packages, with sales increasing by packages per month for and On 1,has packages on hand but desires to maintain an ending inventory of % of the next month's sales. Prepare a sales budget and a production budget for and
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Transcribed Image Text:Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $30. Lugo
projects sales for April will be 2,000 packages, with sales increasing by 250 packages per month for May, June, and
July. On April 1, Lugo has 325 packages on hand but desires to maintain an ending inventory of 20% of the
next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June.
Begin by preparing a sales budget for April, May, and June.
Lugo Company
Sales Budget
April, May, and June
April
May
Budgeted packages to be sold
Sales price per package
Total sales
June
Total
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