Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,400 units, April 14,380 units, May 16,300 units, and June 21,500 units. Marlow Company’s ending finished goods inventory policy is 20% of the following month’s sales. Marlow plans to sell 16,700 units in May. What is budgeted ending inventory for March? Multiple Choice 2,876 3,260 2,760 2,080
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.
Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,400 units, April 14,380 units, May 16,300 units, and June 21,500 units. Marlow Company’s ending finished goods inventory policy is 20% of the following month’s sales. Marlow plans to sell 16,700 units in May. What is budgeted ending inventory for March?
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2,876
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3,260
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2,760
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2,080
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