Prepare a sales budget. b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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.
Sales and Production Budgets
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:
| Rumble | Thunder | ||
| Estimated inventory (units), June 1 | 750 | 300 | |
| Desired inventory (units), June 30 | 500 | 250 | |
| Expected sales volume (units): | |||
| Midwest Region | 12,000 | 3,500 | |
| South Region | 14,000 | 4,000 | |
| Unit sales price | $60 | $90 |
a. Prepare a sales budget.
b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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