1 Morgan Company produces and sells laptop computers It had

1. Morgan Company produces and sells laptop computers. It had 2,000 computers in finished goods inventory at the end of the last year. The company expects to sell 20,000 computers and would like to complete operations in this year with at least 2,500 completed computers in inventory. There is no ending work-in-process inventory in either year. The laptop computers sell for $2,000 each. Prepare the sales budget for the year. (5 points)

Solution

The sales budget shows the expected number of units to be sold along with the selling price the the units and the expenses that cater to the selling of these goods

Therefore the sales budget Morgan company

Sales budget = 20,000 * $ 2,000

= $ 40,000,000

The finished goods inventory forms part of production budget as they are included in the goods produced so they don\'t form part of sales budget