Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August. INFORMATION The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each month equal to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
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.
Use the information provided below to calculate the number of units of Product Tex that must be
produced for July and August.
INFORMATION
The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August
and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each
month equal to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
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