3 Budgeting is a process in which the plan for the business is made in respect of all the incomes and expenses which will be occurring in the coming period. With the help of this, there will be proper control which will be established and that will help in reducing the costs and increasing the profitability of the business (De Azevedo et al., 2013). In the given case master budget is prepared and all the calculation for that is provided below. a) The sales budget is the budget in which all the information about the sale units and its price is shown to ascertain the total sale value of a given period (Ionescu and Bîgioi, 2016). Sales budget ParticularsJanuaryFebruar y MarchTotal Sales units3150345033209920 Selling price per unit45454545 Total sales141750155250149400446400 Expected cash collection ParticularsJanuaryFebruaryMarchTotal November20250.0020250.00 December77760.0019440.0097200.00 January35437.5085050.0021262.50141750.00 February38812.5093150.00131963 March37350.0037350.00 Total133448143303151763428513 b) The production which will be made in the business is ascertained with the help of the production budget and in that, all the relevant data is taken into use. ParticularsJanuar y Februa ry MarchTotalDecemb er Sales units31503450332099202880 Add: closing stock103599610503081945 Less: opening stock94510359962976864 Production units324034113374100252961 c) ParticularsJanuarFebruarMarchTotal
End of preview
Want to access all the pages? Upload your documents or become a member.