Sales Budget
The marketing department has estimated sales as follows for the remainder of
the year: (Actual sales in June were 5,000 units)
June	5,000
July	8,000		October		8,000
August	15,000		November		6,000
September	12,000		December		10,000
The selling price of a SUPER DUPER widget is $35 and all sales are on account.
Based on past experience, sales are collected in the following pattern:
	40% in the month of sale
	55% in month following the sale
	5% are never collected (uncollectible)
Vaughan Company
Sales Budget					Total
3rd Quarter	June	July	August	September	3rd Quarter
Sales in Units	5,000	8,000	15,000	12,000	35,000
Selling Price per Unit	35	35	35	35	35
Total Sales in $	175,000	280,000	525,000	420,000	1,225,000
						2
Cash Collections						2
June's Cash Collections		115,500			115,500
July's Cash Collections		112,000	154,000		266,000
August's Cash Collections			210,000	288,750	210,000
September's Cash Collections				168,000	168,000
Total Cash Collections		$ 227,500	$ 364,000	$ 456,750	$ 1,048,250
Production Budget
The company maintains a finished goods inventory equal to 5% of the following
month's sales. The inventory of finished goods on July 1 is as it should be.
Vaughan Company
Production Budget				Total
3rd Quarter	July	August	September	3rd Quarter
Budgeted Sales in Units	8,000	15,000	12,000	35,000
Add: Desired Ending Inventory	750	600	200	1,550		rethink this number and add a formula
Total Needs	8,750	15,600	12,200	36,550
Less: Beginning Inventory	400	750	600	1,750		This should represent the BI and EI for the quarter. Not the whole quarter - July 1 and Sept 30
Required Production	8,350	14,850	11,600	34,800