ales budget is given below for one of the products manufactured by the Key Company, Inc. January................. 21,000 units February............... 36,000 units March.................... 61,000 units April...................... 41,000 units May....................... 31,000 units The inventory of finished goods at the end of each month is equal to 20% of the next month's sales. Each unit of product requires a specialized electrical s
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.
A sales budget is given below for one of the products manufactured by the Key Company, Inc.
|
January................. |
21,000 units |
|
February............... |
36,000 units |
|
March.................... |
61,000 units |
|
April...................... |
41,000 units |
|
May....................... |
31,000 units |
The inventory of finished goods at the end of each month is equal to 20% of the next month's sales.
Each unit of product requires a specialized electrical switch (direct material). Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on January 1 of the current year. Key Company, Inc. is able to purchase each switch at a price of $8.25 from its supplier.
What is the total dollar amount for budgeted switch purchases in February?
IMPORTANT: Provide your answer in the following format: ###### (Do NOT use the dollar sign or commas in your final answer)
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