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 24,400 34,800 West Region unit sales 26,400 27,700 Total 50,800 62,500 The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,500 and 2,500 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,100 and 2,700 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 | 24,400 | 34,800 | ||
| West Region unit sales | 26,400 | 27,700 | ||
| Total | 50,800 | 62,500 |
The finished goods inventory estimated for October 1 for the Bath and Gym scale models is 1,500 and 2,500 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,100 and 2,700 units, respectively.
Prepare a production budget for the Bath and Gym scales for the month ended October 31.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
