Nafari Company's sales budget has the following unit sales projections for each quarter of Year 4: Quarter Unit Sales January-March 648,000 April-June 816,000 July-September 588,000 October-December 660,000 Total 2,712.000 Sales for the first quarter of Year 5 are expected to be 720,000 units. Ending inventory of finished goods for each quarter is scheduled to equal 10 percent of the next quarter's budgeted sales. The company's ending inventory on December 31, Year 3, is estimated at 56,700 units. Develop a quarterly production budget for Year 4 and for Year 4 in total.
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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