Use the following are budgeted data for Your Company, a merchandising company, to determine how many units need to be purchased in January: Budgeted Sales (at retail- what you sell for) January.................. $300,000 February................ $340,000 March.................... $400,000 April...................... $350,000 Cost of goods sold as a percentage of sales is 60%. The desired ending inventory is 75% of next month's sales. HINT: This is just a production budget tweaked to be calculated in dollars instead of units
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.
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