Sentra Sporting Company sells tennis rackets and other sporting equipment. The purchasing department manager prepared the invente purchases budget. Sentra's policy is to maintain an ending inventory balance equal to 15% of the following month's cost of goods sold. January's budgeted cost of goods sold is $165,000. October November December Budgeted Cost of Goods Sold Plus: Desired Ending Inventory 44,000 Inventory Needed Less: Beginning Inventory Required purchases (on 155,000 135,000 145,000 199,000 28,000 171,000 Account) What would be the required purchases (on account) for December?
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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