Victory Enterprise manufactures cabinets. Projected sales in units are as follows: October – 4.600 units; November – 5,000 units; December – 4,200 units; January – 6,000 units. The ending finished goods inventory for every month is projected to be at 50% of the sales in units of the next month. The number of units to be produced in December should be: 1. 3,000 units 2. 5,100 units 3. 4,200 units 4. 5,000 units
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.
Victory Enterprise manufactures cabinets. Projected sales in units are as follows: October – 4.600 units; November – 5,000 units; December – 4,200 units; January – 6,000 units.
The ending finished goods inventory for every month is projected to be at 50% of the sales in units of the next month.
The number of units to be produced in December should be:
1. 3,000 units
2. 5,100 units
3. 4,200 units
4. 5,000 units
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