Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 30,000 $985,000 August 34,000 1,062,800 September 38,000 1,200,000 October 37,000 1,142,100 Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Palmgren CompanyProduction BudgetFor the Third Quarter July August September Total Unit sales fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 - Select - - Select - - Select - - Select - Total needed fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 - Select - - Select - - Select - - Select - Units produced fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in
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.
Production Budget
Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.
| Unit Sales | Dollar Sales | |
| July | 30,000 | $985,000 |
| August | 34,000 | 1,062,800 |
| September | 38,000 | 1,200,000 |
| October | 37,000 | 1,142,100 |
Company policy requires that ending inventories for each month be 25 percent of next month’s sales. At the beginning of July, the beginning inventory of consumer products met that policy.
Required:
Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
Palmgren CompanyProduction BudgetFor the Third Quarter
| July | August | September | Total | |
|---|---|---|---|---|
| Unit sales | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
|
|
- Select - | - Select - | - Select - | - Select - |
| Total needed | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 |
|
|
- Select - | - Select - | - Select - | - Select - |
| Units produced | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 |
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