re Bates & Hill's production budget for the first quarter. Joshua Hill, Bates & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter. January February March Quarter Budgeted units sold 25,000 28,000 32,000 85,000 Budgeted sales price $21 $21 $21 $21 Budgeted revenue $525,000 $588,000 $672,000
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.
Prepare Bates & Hill's production budget for the first quarter.
Joshua Hill, Bates & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter.
|
January
|
February
|
March
|
Quarter
|
||
|---|---|---|---|---|---|
|
Budgeted units sold
|
25,000
|
28,000
|
32,000
|
85,000
|
|
|
Budgeted sales price
|
$21
|
$21
|
$21
|
$21
|
|
|
Budgeted revenue
|
$525,000
|
$588,000
|
$672,000
|
$1,785,000
|
Budgeted sales of April is 34,000. Company policy requires an ending finished goods inventory each month that will meet 20% of the following month's sales volume. Joshua plans to have 3,200 finished bricks at a cost of $49,280 in inventory at the beginning of the year.
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