The Master Budget 

1. Sales Budget

 

2. Production Budget

 

Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change.

 

Texas Rex, Inc.

 

Sales Budget

 

For the year ending December 31, 2018

 

                                                 Q1                          Q2                          Q3                          Q4                          Total

 

Units

 

Unit Selling Price              _______             _______             ________           _______             ________

 

Budgeted Sales

 

A production budget tells management how many units must be produced to satisfy anticipated sales and ending inventory needs.

 

Assume the company requires 20% of the next quarter’s sales in ending inventory and that beginning inventory of t-shirts for the first quarter of the year was 180.

 

Texas Rex, Inc.

 

Production Budget

 

For the year ending December 31, 2018

 

                                                 Q1                          Q2                          Q3                          Q4                          Total

 

Sales in Units

 

Desired Ending Inv.         _______             _______             ________           _______             ________

 

Total Needs       

 

Less Beginning Inv.          _______             _______             ________           _______             ________

 

Units to be Produced

Answer rating: 100% (QA)

Step 1 Calculate Desired Ending Inventory For each quarter multiply the next quarters sales ... View the full answer