Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April 660 May June 740 690 July 780 The company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. Finished goods inventory on April 1 is 198 units. Prepare a production budget for the months of April, May, and June. Next month's budgeted sales (units) Ratio of inventory to future sales RUIZ CO. Production Budget For April, May, and June Required units of available production Units to be produced April May June 740 690 780 30%
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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