Budgetary Control

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Budgetary Control

Production Budget

Area
X
Y
North
6,000 3,250
South
6,500
East
8,500
West
4,500 2,750
 Selling prices- X Rs per unit Y Rs per unit It was decided that additional advertising campaign will be undertaken in South & East which will result in additional sales of 1,500 units of X in South & 2,500 units of Yin East.You are required to prepare a sales budget for the month of
June 2020.
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2. Production Budget
 It is an estimate of production for the budget period It is the initial step in budgeting manufacturing operations.
Factors to be considered in forecasting production Sales budget Inventory policy Production capacity Management policy
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Ex:-From the following particulars, prepare a production budget of a company for the month ended June 30, 2020.

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