Bingham Company manufactures drinking glasses. One unit is a package of eight glasses which sells for $20 Bingham projects sales for April will be 2.500 packages, with sales increasing by 500 packages per month for May, June and July On April 1, Bingham has 325 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Bingham for April, May, and June Budgeled packages to be sold Sales price per package 5 April 2.500 20 $ 50.000 May Budgeled packages to be sold Plu Desired packages in ending inveniory Total packages needed Less Packages in beginning inventory Budgeted packages to be produced 3,000 20 $ 60 000 $ Now prepare a production budget for Apr May, and June Bingham Company Production Budget April, May, and June April 2.500 June 3.500 20 S 70.000 S May 3,000 Total 9,000 20 180.000 June 3,500 Total 9.000
Bingham Company manufactures drinking glasses. One unit is a package of eight glasses which sells for $20 Bingham projects sales for April will be 2.500 packages, with sales increasing by 500 packages per month for May, June and July On April 1, Bingham has 325 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Bingham for April, May, and June Budgeled packages to be sold Sales price per package 5 April 2.500 20 $ 50.000 May Budgeled packages to be sold Plu Desired packages in ending inveniory Total packages needed Less Packages in beginning inventory Budgeted packages to be produced 3,000 20 $ 60 000 $ Now prepare a production budget for Apr May, and June Bingham Company Production Budget April, May, and June April 2.500 June 3.500 20 S 70.000 S May 3,000 Total 9,000 20 180.000 June 3,500 Total 9.000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Concept explainers
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.
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Transcribed Image Text:Bingham Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $20 Bingham projects sales for April will be 2.500 packages, with sales increasing by 500 packages per month for May, June
and July On April 1, Bingham has 325 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Bingham for April, May, and June
Budgeled packages to be sold
Sales price per package
5
April
2.500
20 $
50.000
May
3,000
20 $
$60.000 $
Now prepare a production budget for Apr May, and June
Budgeled packages to be sold
Plu Desired packages in ending inventory
Total packages needed
Less Packages in beginning inventory
Budgeted packages to be produced
Bingham Company
Production Budget
April May, and June
April
2,500
June
3.500
201
70.000 S
May
3,000
Total
9,000
20
180.000
June
3,500
Total
9.000
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