Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Walnut's policy is to have an ending inventory of 50% of the next month's sales needs on hand. July 1 inventory is projected to be 2,200 units. Selling and administrative costs are budgeted to be $20,000 per month plus $9 per unit sold. What are budgeted selling and administrative expenses for July? Multiple Choice $59,600 $64,100 $55,350 $94,950
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.
Walnut has
Multiple Choice
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$59,600
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$64,100
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$55,350
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$94,950
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