Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent. Unit Sales, Year Ended 20Y8 Increase (Decrease) Actual Over
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Forecast Sales Volume and Sales BudgetFor 20Y8, Raphael Frame Company prepared the sales budget that follows.
At the end of December 20Y8, the following unit sales data were reported for the year:
Unit Sales 8" × 10" Frame 12" × 16" Frame East 27,501 11,336 Central 6,767 4,214 West 5,856 3,502 Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8Product and Area Unit Sales
VolumeUnit Selling
PriceTotal Sales 8" × 10" Frame: East 26,700 $14 $373,800 Central 6,700 14 93,800 West 6,100 14 85,400 Total 39,500 $553,000 12" × 16" Frame: East 10,900 $15 $163,500 Central 4,300 15 64,500 West 3,400 15 51,000 Total 18,600 $279,000 Total revenue from sales $832,000 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $15 and the unit selling price for the 12" × 16" frame is expected to increase to $17, effective January 1, 20Y9.
Required:
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.
Unit Sales,
Year Ended 20Y8Increase (Decrease)
Actual Over BudgetBudget Actual Sales Amount Percent 8" × 10" Frame: East fill in the blank fill in the blank fill in the blank fill in the blank Central fill in the blank fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank fill in the blank 12" × 16" Frame: East fill in the blank fill in the blank fill in the blank fill in the blank Central fill in the blank fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank fill in the blank 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.
20Y8
Actual
UnitsPercentage
Increase
(Decrease)20Y9
Budgeted
Units (rounded)8" × 10" Frame: East fill in the blank fill in the blank fill in the blank Central fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank 12" × 16" Frame: East fill in the blank fill in the blank fill in the blank Central fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank FeedbackTo calculate the difference subtract budget from actual sales.
3. Prepare a sales budget for the year ending December 31, 20Y9.
Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y9 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East fill in the blank $fill in the blank $fill in the blank Central fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank Total fill in the blank fill in the blank $fill in the blank 12" × 16" Frame: East fill in the blank $fill in the blank $fill in the blank Central fill in the blank fill in the blank fill in the blank West fill in the blank fill in the blank fill in the blank Total fill in the blank $fill in the blank Total revenue from sales $fill in the blank f
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