Production My Company forecasts sales in units for Quarter 1-4 2019 as follows: Quarter 3-8,500 Quarter 4-10,800 Quarter 1-6,000 Quarter 2-7.200 Selling price will remain at 300 Php for the wholeyear. Moreover, My Company would like to maintain 1,000 units in its ending inventory at the end of each quarter. Beginning inventory at the start of Quarter 1 amounts to units. How many units should My Company produce in order to fulfill the expected sales of thecompany? Required: Prepare a Sales Budgetand ProductionBudget.
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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