Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2014 are as follows:
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 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
For the first three Months of, 2014
|Budgeted sales Units||$40,000||$50,000||$60,000|
|Selling price per Unit||$150||$150||$150|
|Add: Desired ending inventory of finished goods||$1,875,000||$2,250,000|
|Less: Beginning inventory of finished goods||$1,500,000||$1,875,000|
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from Accounting 301: Applied Managerial AccountingChapter 11 / Lesson 4