Tamy Sdn Bhd produces wooden desks. The following estimates are provided for the month of May, June, July and August 2021. Budgeted wooden desk sales in units 8,000 7,000 6,000 5,000 May June July August The estimated selling price is RM120 per unit. Tamy Sdn Bhd wants to have 10% of the next month's sales in units on hand at the end of each month. REQUIRED a) Prepare the sales budget for the month of May, June , July and Total 2021. b) Prepare the production budget for the month of May, June, July and Total 2021.
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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