Production budget Seguin Inc. has the following projected unit sales for the first four months of the year: Month Unit Sales January 81,920 February 76.000 March April 102,400 122.000 Company policy is to have an ending monthly inventory equal to 5 percent of next month's estimated sales; however, this criterion was not in effect at the end of the past year. Ending inventory at that time was 5,600 units. Determine the company's production requirements for each month of the first quarter of the year. January February March Budgeted production in 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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