The Company produces widgets. The sales forecast for 2022 is as follows: 2022 Quarter 1 3,000 Units 2022 Quarter 2 8,000 Units 2022 Quarter 3 5,000 Units 2022 Quarter 4 6,000 Units 2023 Quarter 1 5,000 Units The beginning of the year inventory of widgets was 900 units. Management desires and ending inventory each quarter of 30% of the following quarter's sales units. Prepare the quarterly production budget for each quarter of 2022 (No need to indicate the total for the year).
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 Company produces widgets. The sales
|
2022 |
Quarter 1 |
3,000 |
Units |
|
|
2022 |
Quarter 2 |
8,000 |
Units |
|
|
2022 |
Quarter 3 |
5,000 |
Units |
|
|
2022 |
Quarter 4 |
6,000 |
Units |
|
|
2023 |
Quarter 1 |
5,000 |
Units |
The beginning of the year inventory of widgets was 900 units. Management desires and ending inventory each quarter of 30% of the following quarter's sales units.
Prepare the quarterly production budget for each quarter of 2022 (No need to indicate the total for the year).
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