Production Budget Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Northern Region unit sales Southern Region unit sales Total Bath Gym Scale Scale The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 1,100 and 2,700 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 800 and 2,900 units, respectively. 26,100 33,300 28,200 29,600 54,300 62,900 Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Total units available Healthy Measures Inc. Production Budget For the Month Ending March 31 Total units to be produced Units Bath Scale Units Gym Scale
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.
The production budget provides the details of units to be produced. It requires estimated sales, beginning units of finished goods, and ending units of finished goods. The company makes a production reports to determine the units to be produced based on the estimates.
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