Erin Company, Inc. has the following budgeted sales for the first quarter: Month: January February March Units 16,000 21,000 18,000 Inventory of finished goods on hand at the beginning of the quarter is 500 units. The company desires to maintain ending inventory equal to 20% of next month's sales in units. How many units are to be produced during January? A. 16,000 units B. 19,700 units C. 20,700 units D. 20,200 units
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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Month:
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January
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February
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March
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Units
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16,000
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21,000
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18,000
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