Vaughn Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2022 sales budget is as follows: Quarter Units of HD-240 1 2 3 4 6.500 6.700 Total 9,600 10,900 The January 1, 2022, inventory of HD-240 is 1,400 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2023 to be 20% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter for 2022. VAUGHN COMPANY Production Budget-Product HD-240 For the Year Ending December 31, 2022 Quarter 2 3 Year
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.
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