ny produces floor mats used in gyms and dojos. The sales budget for four months of the year is as shown in the table. Company policy requires that ending inventories for each month be 15 percent of next month’s sales. At the beginning of April, the beginning inventory of mats met that policy. 1.Compute for the number of units produced for the month of May. 2.Compute for the number of units produced for the month
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.
Bieber Company produces floor mats used in gyms and dojos. The sales budget for four months of the year is as shown in the table. Company policy requires that ending inventories for each month be 15 percent of next month’s sales. At the beginning of April, the beginning inventory of mats met that policy.
1.Compute for the number of units produced for the month of May.
2.Compute for the number of units produced for the month of July.
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