Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shade sells for $136. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. Required: Prepare Shadee’s sales budget for May and June. Prepare Shadee’s production budget for May and June.
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.
Shadee Corporation expects to sell 590 sun shades in May and 360 in June. Each shade sells for $136. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 50 shades. Required: Prepare Shadee’s sales budget for May and June. Prepare Shadee’s production budget for May and June.
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