Prepare the production budget for May. CHAMP, INCORPORATED Production Budget Next period budgeted sales units Desired ending inventory units Total required units Add: Beginning inventory units Units to produce May
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.
![Champ Incorporated budgets the following sales in units for the coming two months. Each
month's ending inventory of finished units should be 50% of the next month's sales. The
April 30 finished goods inventory is 140 units.
Budgeted sales units
May
280
Prepare the production budget for May.
CHAMP, INCORPORATED
Production Budget
Next period budgeted sales units
Desired ending inventory units
Total required units
Add: Beginning inventory units
Units to produce
June
290
May](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fb70d31-6024-4f3b-a616-03f2637f01bd%2F011f6558-c306-420e-b8e4-179e5d6123c9%2F6890ad_processed.png&w=3840&q=75)
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