The Colson Company has budgeted sales for the year as follows: Quarter 1 2 3 4 Sales in units 13,200 15,200 19,100 17,200 The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 4,200 units. Scheduled production for the third quarter is:
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.
The Colson Company has budgeted sales for the year as follows:
| Quarter | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Sales in units | 13,200 | 15,200 | 19,100 | 17,200 |
The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 4,200 units. Scheduled production for the third quarter is:
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