Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows: July August September October Expected sales 10,000 12,000 8,000 14,000 Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales. How many units are required for production for the quarter ended September?
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.
Dolly Plastics Corporation manufactures and sells plastic casings. Expected casing sales (in units for the upcoming months are as follows:
|
|
July |
August |
September |
October |
|
Expected sales |
10,000 |
12,000 |
8,000 |
14,000 |
Five ounces of plastic resin are needed to produce every case. Dolly likes to have enough plastic resin on hand at the end of the month to cover 20% of the next month’s production requirements. Dolly also likes to maintain a finished goods inventory equal to 10% if the next month’s estimated sales.
How many units are required for production for the quarter ended September?
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