ABC Company has prepared a unit sales budget for the upcoming months as follows: Units Month Units Month January. February....... March......... 5,000 7,500 10,000 15,000 20,000 June. July... August... 30,000 35,000 25,000 10,000 6,000 April. September.... May.... October......... ABC has a policy to maintain ending inventory levels equal to 30% of the coming month's sales requirements. Inventory on January 1 is projected to be 1,200 units. Required: Fill-in the missing amounts in the production budget of ABC Company for the next six months.
ABC Company has prepared a unit sales budget for the upcoming months as follows: Units Month Units Month January. February....... March......... 5,000 7,500 10,000 15,000 20,000 June. July... August... 30,000 35,000 25,000 10,000 6,000 April. September.... May.... October......... ABC has a policy to maintain ending inventory levels equal to 30% of the coming month's sales requirements. Inventory on January 1 is projected to be 1,200 units. Required: Fill-in the missing amounts in the production budget of ABC Company for the next six months.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Concept explainers
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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ASAP PLS
Transcribed Image Text:ABC Company has prepared a unit sales budget for the upcoming months as follows:
Units
Month
Units
June.
July....
August..
September.......
Month
January....
February.......
5,000
7,500
10,000
15,000
20,000
30,000
35,000
25,000
10,000
6,000
March.
April.
May....
October..
ABC has a policy to maintain ending inventory levels equal to 30% of the coming month's sales requirements. Inventory on January 1 is
projected to be 1,200 units.
Required:
Fill-in the missing amounts in the production budget of ABC Company for the next six months.
Transcribed Image Text:Required:
Fill-in the missing amounts in the production budget of ABC Company for the next six months.
ABC Company
Production Budget
Sales.
Ending inventory...
Total needs.
Less: Beginning inventory...
Units to be produced...........
January
5,000
1,200
6,050
February
7,500
March
10,000
April
15,000
10,500
9,000
May
20,000
14,500
11,500
June
30,000
21,000
29,000
40,500
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