1. Sales budget Create a sales budget for the 1st quarter that shows expected sales revenue for January, February, and March and total sales revenue for the quarter. Sales in units are expected to be: 9,000 November: March: December: 9,500 11,500 13,500 January: February: 11,000 April: 9,800 May: 12,500 Selling price/unit is expected to be $21/unit. 2. Cash collections budget Cash sales are generally 10% and credit sales are generally 90%. Credit sales are typically collected: 20% in the month of sale, 60% in the following month after the month of sale, 15% 2 months after the month of sale and 5% are never collected. What is the cash collections budget for January, February, and March and for the quarter? 3. Production budget The company plans to have ending inventory each month of 12% of the following month's expected sales. What is the production budget for January, February, and March and for the 1st quarter? 4. DM budget 4.5 pounds of DM is needed per unit at a cost of $3 per pound. Ending inventory of DM should be 18% of next month's production needs. What is the total cost of DM for January, February, and March and for the 1st quarter?

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…

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…