The marketing department of HASF Corporations has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) Q1 Q2 Q3 Q4 total Budgeted units sales ? 10% increase 10 % decrease 16,335 62,685 Budget selling price per unit 18 18 18 ? 18 budgeted sales revenue ? 297,000 ? 294,030 ? Other information Each quarter ending finished goods inventory is 20% of next month units sold. Next year first quarter beginning inventory is 3,000. Each finished units require 3 grams of raw material that cost Rs 3 per unit. Management desired to end each quarter with an inventory of raw material equal to 15% of the current quarter production needs Beginning inventory of raw material in first quarter 3,000 grams
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.
The marketing department of HASF Corporations has submitted the following sales
|
Q1 |
Q2 |
Q3 |
Q4 |
total |
|
|
Budgeted units sales |
? |
10% increase |
10 % decrease |
16,335 |
62,685 |
|
Budget selling price per unit |
18 |
18 |
18 |
? |
18 |
|
budgeted sales revenue |
? |
297,000 |
? |
294,030 |
? |
Other information
- Each quarter ending finished goods inventory is 20% of next month units sold.
- Next year first quarter beginning inventory is 3,000.
- Each finished units require 3 grams of raw material that cost Rs 3 per unit.
- Management desired to end each quarter with an inventory of raw material equal to 15% of the current quarter production needs
Beginning inventory of raw material in first quarter 3,000 grams
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