Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June. U500 s1000 Estimated inventory (units), June 1 262 71 Desired inventory (units), June 30 301 62 Expected sales volume (units): Northeast Region 2,950 3,300 Southwest Region 5,650 4,900 Unit sales price $135 $215 a. Prepare a sales budget. Enter all amounts as positive numbers. ULTIMATE AUDIO COMPANY Sales Budget For the Month Ending June 30 Product and Area Unit Sales Volume Unit Sales Price Total Sales Model U500: Northeast Region Southwest Region Total Check My Work
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.
Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is made to utilize the available resources or to calculate the amount of resources needed to complete the work. By doing this process, an organization will know the funds it will require to acquire the resources required.
Sales budget: It is budget of units expected to be sold in the budgeting period. The number of units to be sold is determined based on the market demand and the customer orders.
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