ollowing is the sales budget of BULAKLAK Company for the period January to June 2014: Months Units January 100,000 February 90,000 March 90,000 April 80,000 May 70,000 June 70,000 The company's projection is to have inventory on hand at the end of each month equal to 70% of the sales for the month following. It is assumed that the inventory at the end of December 2013 will meet this requirement. It is also estimated that the 80,000 units will be sold in July 2014. What is the total production budget in units for the six months period ending June 30, 2014? a. 556,000 b. 486,000 c. 524,000 d. 479,000
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.
Please do provide the solution for the correct answer. Thank you!
Following is the sales budget of BULAKLAK Company for the period January to
June 2014:
Months Units
January 100,000
February 90,000
March 90,000
April 80,000
May 70,000
June 70,000
The company's projection is to have inventory on hand at the end of each month
equal to 70% of the sales for the month following. It is assumed that the inventory
at the end of December 2013 will meet this requirement. It is also estimated that
the 80,000 units will be sold in July 2014. What is the total production budget in
units for the six months period ending June 30, 2014?
a. 556,000
b. 486,000
c. 524,000
d. 479,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
