Garver Industries has budgeted the following unit sales: 2020 Units January February March 10,000 9,000 April 11,000 May 15,000 The finished goods units on hand on December 31, 2019, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. Instructions For the first quarter of 2020, prepare a production budget. Expected unit sales Desired ending finished goods units Total required units GARVER INDUSTRIES Production Budget For the Quarter Ended March 31, 2020 January February 8,000 Less: Beginning finished goods units Required production units March Total 1000

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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.