a. What should total sales revenue be if Michigan and Indiana estimate sales of 8,000 and 20,000 units, respectively, and the unit selling price is $55? b. If the beginning finished goods inventory is an estimated 2,500 units and the desired ending inventory is 1,000 units, how many units should be produced? c. What dollar amount of material should be purchased at $3 per pound if each unit of product requires 2 pounds, and beginning and ending m
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.
Blue Devil Inc. sells only one single product in both Michigan and Indiana. The company is preparing its
Required:
a. What should total sales revenue be if Michigan and Indiana estimate sales of 8,000 and 20,000 units, respectively, and the unit selling price is $55?
b. If the beginning finished goods inventory is an estimated 2,500 units and the desired ending inventory is 1,000 units, how many units should be produced?
c. What dollar amount of material should be purchased at $3 per pound if each unit of product requires 2 pounds, and beginning and ending materials inventories should be 3,000 and 4,000 pounds, respectively?
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