Seebold, Inc., has budgeted sales and production over the next quarter asfollows: July August September OctoberSales in units . . . . . . 15,000 18,000 ? 22,000Production in units . . 15,900 18,900 21,300 —On July 1, Seebold, Inc., has 4,500 units in finished goods. Ending inventory offinished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units. Calculate the budgeted unit sales for September. (Hint: Use the cost of goods sold model.)a. 20,000.b. 21,000.c. 21,400.d. 22,100.
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.
Seebold, Inc., has budgeted sales and production over the next quarter as
follows: July August September October
Sales in units . . . . . . 15,000 18,000 ? 22,000
Production in units . . 15,900 18,900 21,300 —On July 1, Seebold, Inc., has 4,500 units in finished goods. Ending inventory of
finished goods for each month is budgeted to be 30% of the next month’s budgeted sales in units. Calculate the budgeted unit sales for September. (Hint: Use the cost of goods sold model.)
a. 20,000.
b. 21,000.
c. 21,400.
d. 22,100.
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