Use the information provided below to calculate the number of units of Product Blue that must be produced for September and October 2023. The estimated sales volume of Product Blue is 25 000 units for August, 21 000 units for September, 30 000 units for 0ctober and 36 000 units for November. The management policy maintains an ending finished goods inventory each month equalling to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
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.
Use the information provided below to calculate the number of units of Product Blue that must be produced for September and October 2023.
The estimated sales volume of Product Blue is 25 000 units for August, 21 000 units for September, 30 000 units for 0ctober and 36 000 units for November. The management policy maintains an ending finished goods inventory each month equalling to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
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