Case+9-30+Master+Budget+with+Supporting+Schedules

Case+9-30+Master+Budget+with+Supporting+Schedules - Chapter9

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Chapter 9 Case 9-30 Master Budget with Supporting Schedules You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to  various retail outlets located in shopping malls across the country. In the past, the company has done very little in  the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the  upcoming second quarter in order to show management the benefits that can be gained from an integrated  budgeting program. To this end, you have worked with accounting and other areas to gather the information  assembled below. The company sells many styles of earrings, but all are sold for the same price - $10 per pair. Actual sales  of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual)…. . 20,000 June (budget)……………………. 50,000 February (actual)…. 26,000 July (budget) ……………………… 30,000 March (actual)……… 40,000 August (budget)………………… 28,000 April (budget)………. 65,000 September (budget)…………. 25,000 May (budget)………. 100,000 The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand 
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This note was uploaded on 01/23/2011 for the course LAWS 310 taught by Professor Forgot during the Spring '10 term at DeVry Chicago.

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Case+9-30+Master+Budget+with+Supporting+Schedules - Chapter9

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