Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 20

Estimate Sales Levels Using Production Budgets

Sanlax, Inc., makes portable appliances and develops plans using an annual budgeting cycle. For next year, the production budget is 200,000 units. Inventories are expected to increase by 20,000 units.

Required

What is the sales budget for the coming year?

Step 1 of 2

Sales Budget:

Sales budget is the first budget prepared as part of the master budget. Sales budget prepared estimates the number of units to be sold and amount expected to earn from sales made.