urniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 32,000 February 36,800 March 29,600 April 43,200 Finished goods inventory at the end of December is 7,100 units. Target ending finished goods inventory is 20% of the next month's sales. Required: Calculate the How many mattresses should be produced in each month of the first quarter of 2019?
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.
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019:
Month Sales
January 32,000
February 36,800
March 29,600
April 43,200
Finished goods inventory at the end of December is 7,100 units. Target ending finished goods inventory is 20% of the next month's sales.
Required: Calculate the How many mattresses should be produced in each month of the first quarter of 2019?
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