Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toycars for October. Each toy car requires four wheels. Trumbull’s policy is to maintain 10 percentof the next month’s production in inventory at the end of a month. How many wheels shouldTrumbull purchase during September?a. 195,000 b. 112,500c. 102,500 d. 410,000
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.
Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are
cars for October. Each toy car requires four wheels. Trumbull’s policy is to maintain 10 percent
of the next month’s production in inventory at the end of a month. How many wheels should
Trumbull purchase during September?
a. 195,000 b. 112,500
c. 102,500 d. 410,000
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