All applicable Exercises are available with McGraw-Hill’s Connect™Accounting. Production and purchases budgets Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for February is 8,000 medallions. Estimated beginning inventories and desired ending inventories for February are: Estimated Desired Beginning Inventory Ending Inventory Medallions . . . . . . . . . . . . . 4,000 3,200Ribbon (yards) . . . . . . . . . . 200 80Required:a. Calculate the number of medallions to be produced in February.b. Calculate the number of yards of ribbon to be purchased in February.
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.
All applicable Exercises are available with McGraw-Hill’s Connect™
Accounting. Production and purchases budgets Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales
Ribbon (yards) . . . . . . . . . . 200 80
Required:
a. Calculate the number of medallions to be produced in February.
b. Calculate the number of yards of ribbon to be purchased in February.
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