Master Budgets
Chapter 22
Exercises
Operating Budgets
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In-Class Exercise (Form groups and work exercise):
Exercise No.
E22-24
Page
1370
Sales & Production Budgets
(Use the format, as reflected on the next slide, to begin
this exercise)
Sales Budget
Operating Budgets
Exercise E22-24:
Use the following information to prepare a sales and a production
budget for the months of April, May, and June.
(a)
(b)
(c)
(d)
Dunbar Company manufactures drinking glasses.
One unit is a package of 8 glasses.
Each package of glasses sell for $20.
Projected sales for April will be 3,000 packages, with sales
increasing by 100 packages per month for May, June, and July.
(e) On April 1, Dunbar has 250 packages on-hand, but desires to
maintain an ending inventory of 10% of the next month’s sales.
Operating Budgets
Sales Budget
Sales Budget
Production Budget
Production Budget
(Use the format, as reflected on the next slide, to
work this part of the exercise)
Production Budget
Production Budget
Data from Part 1
Production Budget
10% of next month’s sales
(3,100 x 10% = 310)
Production Budget
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Production Budget
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Production Budget
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Production Budget
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Production Budget
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