Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Show the production budget that Harvey would assemble for the next quarter. Budgeted sales volume Target ending FG Inventory Total units needed Beginning FG Inventory Budgeted units to be produced Month 1 5,000 Month 2 4,500 Month 3 6,000 Quarter
Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Show the production budget that Harvey would assemble for the next quarter. Budgeted sales volume Target ending FG Inventory Total units needed Beginning FG Inventory Budgeted units to be produced Month 1 5,000 Month 2 4,500 Month 3 6,000 Quarter
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
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Transcribed Image Text:BE6.3 -Using Excel to Create a Production Budget
PROBLEM
Filling in for his supervisor, who suddenly left the company, Harvey quickly
evaluated the situation to wrap up his department's production budget. The
department currently holds enough inventory to be in compliance with its
standard which is based on the following month's budgeted sales. From the
sales and previous budgets, he learned the budgeted unit sales for the next 4
months and the standard for holding inventory at month end which are both
presented here.
Unit sales per month
Month 1
Month 2
Month 3
Month 4
Ending inventory standard
Materials held at month end
5,000
4,500
6,000
6,500
10%
Student Work Area
Required: Provide input into cells shaded in yellow in this template. Input the required
mathematical formulas or functions with cell references to the Problem area or work area as
indicated.
Show the production budget that Harvey would assemble for the next quarter.
Month 3
Month 1
5,000
Month 2
4,500
Budgeted sales volume
Target ending FG Inventory
Total units needed
Beginning FG Inventory
Budgeted units to be produced
▼
▼
6,000
▼
Quarter
▼
▼
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