The production budget shows expected sales units are 100000. The required production units are 107000. What are the beginning and desired ending finished goods units, respectively? Beginning Units Ending Units 3000 7000 10000 10000 10000 10000 3000 7000
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.
PRODUCTION BUDGET
Production Budget is a Financial Planning in which No. Of Units Produced During the Period is Computed on basis of Past Performance.
Sales Units is Computed :—
Sales Unit = Beginning Inventory of Finished Goods + No. Of Units Produced During The Year - Ending Inventory of Finished Goods.
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