Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale East Region unit sales 24,800 33,700 West Region unit sales 26,800 28,100 Total 51,600 61,800 The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,600 and 2,200 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,400 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended October 31.
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.
Production Budget
Weightless Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:
| Bath Scale | Gym Scale | |||
| East Region unit sales | 24,800 | 33,700 | ||
| West Region unit sales | 26,800 | 28,100 | ||
| Total | 51,600 | 61,800 |
The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,600 and 2,200 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,200 and 2,400 units, respectively.
Prepare a production budget for the Bath and Gym scales for the month ended October 31.
| WEIGHTLESS INC. | ||
| Production Budget | ||
| For the Month Ending October 31 | ||
| Units Bath Scale |
Units Gym Scale |
|
| Expected units to be sold | fill in the blank 1 | fill in the blank 2 |
| fill in the blank 4 | fill in the blank 5 | |
| Total units required | fill in the blank 6 | fill in the blank 7 |
| fill in the blank 9 | fill in the blank 10 | |
| Total units to be produced | fill in the blank 11 | fill in the blank 12 |
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