Assume that we have the following estimations of the sales units for the 2024 sales, and that there should be 25% to be kept as closing balance from next quarter, and that the opening balance of the product (X) is 800 Units. You are required to prepare the 2024 budget of production: 1st Quarter,2024 2000 units 2nd Quarter,2024 6000 units 3rd Quarter,2024 5000 units 4th Quarter,2024 4000 units 1st Quarter,2025 2000 units A” Company estimates its sales for the next “5” months as following Feb March April May Jun July 10000 12000 15000 16000 18000 20000 “A” expects to sale at OMR 5 per unit. Sales policy is to receive 30% of its sales in cash in the same month of sale and 50 % in the next month and the rest on the third month. Purchases cost is expected to be 70% of the next month sales and is paid in two equal installments in the two months following the purchases month. Other expenses: Wages 30% of each month sales Rent OMR 12,000 paid on April and OMR 10,000. on June Taxes OMR 3,000 to be paid in two parts in May and July. Opening balance for April is OMR 4000. Loan is expected to be received on May 14th OMR 30,000. Instructions: 1- Prepare the Cash Budget for the second quarter of the year 2024(April- Jun).
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.
Accounting
- Assume that we have the following estimations of the sales units for the 2024 sales, and that there should be 25% to be kept as closing balance from next quarter, and that the opening balance of the product (X) is 800 Units. You are required to prepare the 2024 budget of production:
|
1st Quarter,2024 |
2000 units |
|
2nd Quarter,2024 |
6000 units |
|
3rd Quarter,2024 |
5000 units |
|
4th Quarter,2024 |
4000 units |
|
1st Quarter,2025 |
2000 units |
- A” Company estimates its sales for the next “5” months as following
Feb March April May Jun July
10000 12000 15000 16000 18000 20000
“A” expects to sale at OMR 5 per unit. Sales policy is to receive 30% of its sales in cash in the same month of sale and 50 % in the next month and the rest on the third month.
Purchases cost is expected to be 70% of the next month sales and is paid in two equal installments in the two months following the purchases month.
Other expenses:
Wages 30% of each month sales
Rent OMR 12,000 paid on April and OMR 10,000. on June
Taxes OMR 3,000 to be paid in two parts in May and July.
Opening balance for April is OMR 4000.
Loan is expected to be received on May 14th OMR 30,000.
Instructions:
1- Prepare the
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