Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1 through June 30: July 1 June 30 40,000 50,000 10,000 20,000 Finished goods 80,000 50,000 * Two units of direct material are needed to produce each unit of finished product. Direct material* Work-in-process If Paradise Company plans to sell 480,000 units during the fiscal year, the number of units it will have to manufacture during the year is A. 450,000 units. 480,000 units. C. 510,000 units. B. D. 440,000 units.
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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