Preston anticipates selling 223,000 jars with total sales revenue of $267,000 in the first quarter of the year following the year given in the preceding table. Preston has a policy that the ending inventory of jars must be 20​% of the following​ quarter's sales.   Requirement :Prepare a production budget for the year that shows the number of jars to be produced each quarter and for the year in total.       Preston Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each quarter of the upcoming year are as​ follows:       Total sales revenue Number of jars sold 1st quarter. . . . $186,000 153,000 2nd quarter. . . $210,000 181,500 3rd quarter. . . $252,000 211,000 4th quarter. . . $192,000 160,000

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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.