1. Master Budgets
Chapter 22
Exercises

2. Operating Budgets In-Class Exercise (Form groups and work exercise):
Exercise No Page
E Sales & Production Budgets
(Use the format, as reflected on the next slide, to begin this exercise)

3. Sales Budget

4. 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) Dunbar Company manufactures drinking glasses. (b) One unit is a package of 8 glasses. (c) Each package of glasses sell for $20. (d) 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.

5. Operating Budgets
Sales Budget

6. Sales Budget

7. Production Budget Production Budget
(Use the format, as reflected on the next slide, to work this part of the exercise)

8. Production Budget

9. Production Budget
Data from Part 1

10. 10% of next month’s sales (3,100 x 10% = 310)
Production Budget
10% of next month’s sales (3,100 x 10% = 310)

11. Production Budget ( )

12. Production Budget ( )

13. Production Budget ( )

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