Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. HD-240 Quarter 1 2 3 4 5,400 7,430 8,450 10,230 The January 1, 2020, inventory of HD-240 is 2,160 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the f quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020.
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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