Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September Sales in units 44,000 56,000 ? Production in units 44,800 56,300 60,650 The company has 4,800 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each
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.
Frolic Corporation has budgeted sales and production over the next quarter as follows:
| July | August | September | |
|---|---|---|---|
| Sales in units | 44,000 | 56,000 | ? |
| Production in units | 44,800 | 56,300 | 60,650 |
The company has 4,800 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 75,500 units. Budgeted sales for September would be (in units):
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