Built forward from a 440,000-skillet forecast, the Unit 6 master budget schedule for AC420 levels production under a 115,000-unit quarterly ceiling and prices the inventory that builds up. Searches like "ac 420 unit 6 assignment example", "ac420 unit 6 sample" and "ac420 unit 6 example" land here.
What a finished AC420 Unit 6 master budget schedule looks like
Quarterly columns with a year total run through five schedules. Sales multiply 84,000, 92,000, 118,000 and 146,000 skillets by 16.90 dollars, 7,436,000 for the year. The production schedule appears twice. Its first version applies the stated policy, ending inventory at 30 percent of next quarter's sales, and asks for 126,400 and 128,600 units in the third and fourth quarters; a flag marks both against the 115,000-unit ceiling. The second version pours 110,300 every quarter and lets finished goods peak at 69,800 in June. Iron purchases follow at 7.4 pounds a skillet and 0.29 a pound. The cash schedule collects 40 percent of sales in the quarter and 60 percent the next, and shows the line's net cash falling to 371,466 dollars in the second quarter.
How a AC420 Unit 6 example is structured
Each schedule draws only on figures above it, so any cell can be traced back to the forecast. The policy-driven production schedule stays on the page rather than being discarded, because showing it fail is the argument for the level plan; a budget that silently changes the policy leaves a reader unable to see why. The level plan is derived by spreading total required production, 441,200 units, evenly, then checked quarter by quarter to confirm ending inventory never goes negative. Year-total columns sum flows and take inventory balances from the last quarter, a rule stated in a footnote. Iron purchases rest on the level plan, not the rejected one. The cash schedule comes last, and a paragraph reads it: the trough falls in spring, when inventory is building and collections still reflect the slow first quarter, not in December.
A forecast with a holiday peak
84,000 skillets in the first quarter rising to 146,000 in the fourth, priced at 16.90 dollars, with next year's first quarter supplied for the closing inventory target.
The policy meets the ceiling
Ending stock at 30 percent of next quarter's sales demands 126,400 and 128,600 units late in the year, 25,000 more than the line can pour.
Pouring level at 110,300
Even production every quarter stays within capacity and carries finished goods to 69,800 by midyear, about 200,896 dollars of variable cost sitting in the warehouse.
Iron bought to the level plan
7.4 pounds a skillet at 0.29 a pound, with a cushion of 20 percent of next quarter's needs, gives steady purchases of about 236,704 dollars a quarter.
Where cash runs thinnest
Collections of 40 percent now and 60 percent later leave the second quarter weakest, 371,466 dollars of net line cash, while inventory is still building.
Where marks go in AC420 Unit 6
Production set equal to sales, ignoring the inventory policy, is the error that spreads furthest, since purchases, labor and cash all inherit it. A subtler loss comes from applying the policy mechanically and budgeting 128,600 units in a quarter when the problem states a 115,000 ceiling; graders look for the capacity check before anything downstream. Iron purchases computed from sales rather than production, or ending materials tied to the current quarter instead of the next, cost points in most sections. Inventory balances summed across four quarters in the total column are a small but frequent deduction. Cash schedules that collect every sale in its own quarter erase the lag the problem built in, and a budget with no sentence on the second-quarter trough leaves the interpretation marks unclaimed.
Get a AC420 Unit 6 example written to your instructions
Your section's Unit 6 case supplies the forecast, prices, inventory rules, material standards and collection terms; send those, any capacity limits and the rubric. Schedules come back linked so each figure traces to the forecast, with any policy that conflicts with capacity shown failing before it is replaced. First custom sample free, delivered inside 24-48h.
AC420 Unit 6 questions, answered
Is replacing the inventory policy allowed if the problem states it?
Only with the conflict shown. The sample keeps the stated policy on the page, flags the quarters where it exceeds capacity, and then presents the level plan as a necessary revision. If your problem has no capacity limit, the policy stands as given and the second production schedule is left out entirely, which keeps the budget shorter.
Why does the cash trough fall in the second quarter?
Because cash arrives a quarter late. Sixty percent of each quarter's sales are collected the following quarter, so the second quarter lives mostly on the slow first quarter's sales while production and iron purchases run at the full level rate. By the fourth quarter, third-quarter collections are arriving and the position recovers.
Does the budget need a budgeted income statement?
Many AC420 Unit 6 problems end at the cash schedule; others continue to a budgeted income statement and balance sheet. When those are required, cost of goods sold uses the budgeted unit cost times skillets sold, and the ending finished goods balance comes from the level plan. The sample adds them only when the instructions call for them.