Suncat has asked you to prepare a sales budget and production budget for the first quarter of the year using the following information: Selling price of custom wedding cake: $800 Expecting to sell 200 wedding cakes in January and a 10% increase in each month for the next 6 months The required ending inventory is 20% of next month’s sales. Suncat Cake Shop Sales Budget For the Quarter Ended March 31, 2021 January February March Total Expected Sales (Units) Selling Price per Wedding Cake Total Sales Revenue Suncat Cake Shop Production Budget For the Quarter Ended March 31, 2021 January February March Expected Sales (Units) Desired Ending Inventory (Units) Total Required Units Less: Beginning Inventory Required Production
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.
- Suncat has asked you to prepare a sales budget and production budget for the first quarter of the year using the following information:
- Selling price of custom wedding cake: $800
- Expecting to sell 200 wedding cakes in January and a 10% increase in each month for the next 6 months
- The required ending inventory is 20% of next month’s sales.
Suncat Cake Shop
Sales Budget
For the Quarter Ended March 31, 2021
|
|
January |
February |
March |
Total |
|
Expected Sales (Units) |
|
|
|
|
|
Selling Price per Wedding Cake |
|
|
|
|
|
Total Sales Revenue |
|
|
|
|
Suncat Cake Shop
Production Budget
For the Quarter Ended March 31, 2021
|
|
January |
February |
March |
|
Expected Sales (Units) |
|
|
|
|
Desired Ending Inventory (Units) |
|
|
|
|
Total Required Units |
|
|
|
|
Less: Beginning Inventory |
|
|
|
|
Required Production |
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
