Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Required: 1. Determine Shadee's budgeted total sales for May and June. 2. Determine Shadee's budgeted production in units for May and June.
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.
Shadee Corp. expects to sell 630 sun visors in May and 410 in June.
Each visor sells for $24. Shadee’s beginning and ending finished
goods inventories for May are 75 and 45 units, respectively. Ending
finished goods inventory for June will be 60 units.
!
Required:
1. Determine Shadee's budgeted total sales for May and June.
2. Determine Shadee's budgeted production in units for May and June.
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