The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 30,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is $30per unit. The desired ending inventory on June 30 is 3,000 units, and the expected beginning inventory on June 1 is 4,000 units. Prepare the following: a. A sales budget for June. b. A production budget for 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.
5.1
The sales department of Macro Manufacturing Co. has
Prepare the following:
a. A sales budget for June.
b. A production budget for June.
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