Roberts Enterprises has budgeted sales in units for the next five months as follows: June 4660 units July 7900 units August 5460 units September 7020 units October 3860 units Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 932 units. The company needs to prepare a production budget for the second quarter of the year.
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.
Roberts Enterprises has budgeted sales in units for the next five months as follows:
| June | 4660 | units |
| July | 7900 | units |
| August | 5460 | units |
| September | 7020 | units |
| October | 3860 | units |
Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on May 31 contained 932 units. The company needs to prepare a production budget for the second quarter of the year.
The total number of units to be produced in July is:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
