Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,900 units, April 13,700, May 16,200 and June 21,900. Meadow Company’s ending finished goods inventory policy is 15% of the following month’s sales. What is budgeted ending finished goods inventory for May? Multiple Choice 1,635 3,285 2,055 2,430
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.
Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,900 units, April 13,700, May 16,200 and June 21,900. Meadow Company’s ending finished goods inventory policy is 15% of the following month’s sales. What is budgeted ending finished goods inventory for May?
Multiple Choice
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1,635
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3,285
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2,055
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2,430
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