Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400 in quarter 3; and 18600 in quarter 4. management wnta to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022
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.
![Vaughan company estimates that unit sales will be 10,500 in quarter 1; 11,400 in quarter 2; 13,400
in quarter 3; and 18600 in quarter 4. management wnta to have an ending finished goods inventory
equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for
the first six months of 2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd77d9f3f-020f-417a-b291-542a221a7106%2Ffc74d85a-979d-47a9-a0c8-f3db03de61fd%2Fckzctfo_processed.png&w=3840&q=75)
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