# Fantastic Futons manufactures futons. The estimated number of futon sales for the first three...

## Question:

Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2014 are as follows:

January 40,000

February 50,000

March 60,000

Finished goods inventory at the end of 2013 was 10,000 units.

On average, 25% of the futons to be sold in the next month are produced and kept as ending balance in finished goods inventory.

The planned selling price is $150 per unit. What would be the sales budget for March of Fantastic Futons? ## Sales Budget: Sales budge is a statement that shows that the amount f goods that is expected to be sold in upcoming period. It helps the company to plan the manufacturing process in advance according to the demand. ## Answer and Explanation: Fantastic Futons Manufacturers Sales Budget For the first three Months of, 2014 Sales Jan Feb March Budgeted sales Units$40,000 $50,000$60,000
Selling price per Unit $150$150 $150 Total sales$6,000,000 $7,500,000$9,000,000
Budgeted sales $6,000,000$7,500,000 $9,000,000 Add: Desired ending inventory of finished goods$1,875,000 $2,250,000 Total needs$7,875,000 $9,750,000 Less: Beginning inventory of finished goods$1,500,000 $1,875,000 Required sales$6,375,000 \$7,875,000