Zahn Co. predicts sales of 220 units in May and 240 units in June. Each month’s ending inventory should be 25% of the next month’s sales. The April 30 ending finished goods inventory is 55 units. Compute budgeted production (in units) for May.
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.
Zahn Co. predicts sales of 220 units in May and 240 units in June. Each month’s ending inventory should
be 25% of the next month’s sales. The April 30 ending finished goods inventory is 55 units. Compute
budgeted production (in units) for May.
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