MORGAN Merchandising is preparing its Sales Budget for the 3rd Quarter of 2020 based on a budgeted sales price agreed upon at the beginning of the year. To help in the budget preparation, the following information are given: (a) Budgeted sales revenue for the 1st month of 2020 amounted to #375,000. (b) Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. (c) It is forecasted that the same quantities will be sold per month of each quarter. (d) It is estimated that quantities sold will increase by 500 units on the first month of each quarter from the quantities sold of the previous month. What is the budgeted sales revenue for the 3rd quarter? P625,000.00 P1,875,000.00 P1,125,000.00 P4,500,000.00

MORGAN Merchandising is preparing its Sales Budget for the 3rd Quarter of 2020 based on a budgeted sales price agreed upon at the beginning of the year. To help in the budget preparation, the following information are given: (a) Budgeted sales revenue for the 1st month of 2020 amounted to #375,000. (b) Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units. (c) It is forecasted that the same quantities will be sold per month of each quarter. (d) It is estimated that quantities sold will increase by 500 units on the first month of each quarter from the quantities sold of the previous month. What is the budgeted sales revenue for the 3rd quarter? P625,000.00 P1,875,000.00 P1,125,000.00 P4,500,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Gregoire Company has a maximum production capacity of 35,000 units per year. For that capacity…

A: The maximum unit price is the formula that determines the per unit maximum value that the company is…

Q: Pat's Mediterranean Restaurant is preparing its budgeted balance sheet for the coming year. The cash…

A: Cash Budget is prepared to analysis the cash transaction or cash flow of business.Non-cash items…

Q: A company is working on their budgets for the year 2021. The table below has a few of their…

A: The account payable represents the amount due for payment to suppliers. The account payable has…

Q: G & J Merchandising & More is a family-owned auto-parts store. You are the management accountant of…

A: The following calculations are done in the records of G & J Merchandising to show the…

Q: Current Attempt in Progress In May 2020, the budget committee of Grand Stores assembles the…

A: A merchandise purchase budget is a financial plan that outlines the expected expenditures for…

Q: Emmanuel Macron has the following budgeted business transactions for the month of May 2020:…

A: Budgeted cash position = Starting bank balance + Total cash inflows - Total cash outflows…

Q: A company is working on their budgets for the year 2021. The table below has a few of their…

A: A cash budget is an estimation of cash flows for a specified period of time. The cash budget will…

Q: Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The…

A: Income statement:It is a financial statement that calculates the net income generated by the company…

Q: Cali Industries prepares budgets to help manage the company. Cali is budgeting for the fiscal year…

A: The budget is prepared ro estimate the requirements for the future period.

Q: Dear Bartleby, I need assistance with part c to prepare a production budget based on the following…

A: In this question, we Prepare a production budget in units, by month and in total, for the second…

Q: Pharoah Company classifies its selling and administrative expense budget into variable and fixed…

A: SELLING & ADMINISTRATIVE EXPENSESSelling and administrative budget is the statement prepared by…

Q: Swifty Corporation prepared a 2019 budget for 135000 units of product. Actual production in 2019 was…

A: Given that: 2019 budgeted units = 135,000 units Actual production in 2019 = 145,000 units

Q: Swenson, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and…

A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…

Q: 1. Prepare a sales budget for 2 quarters. Elliott Electronics Inc. produces and sells two models of…

A: Sales budget shows the estimated sales revenue forecast for the coming period.

Q: The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: ABC Co. has been requested to prepare a quarterly budgeted income statement for 2021. The regional…

A: Budgeted statements are prepared based on the estimations of revenue and expenditure to be incurred…

Concept explainers

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.

Question

MORGAN Merchandising is preparing its Sales Budget for the 3rd Quarter of 2020 based on a budgeted sales price
agreed upon at the beginning of the year. To help in the budget preparation, the following information are given:
(a) Budgeted sales revenue for the 1st month of 2020 amounted to 375,000.
(b) Budgeted quantities sold for the 1st quarter of 2020 is 4,500 units.
(c) It is forecasted that the same quantities will be sold per month of each quarter.
(d) It is estimated that quantities sold will increase by 500 units on the first month of each quarter from the quantities
sold of the previous month.
What is the budgeted sales revenue for the 3rd quarter?
P625,000.00
P1,875,000.00
P1,125,000.00
94,500,000.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Concept of budgeted sales revenue

VIEW

Calculation of the budgeted sales revenue for the 3rd quarter

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For the quarter ended March 31, 2020, Croix Company accumulates the following sales data for its newest guitar, The Edge: $329,000 budget; $301,500 actual. In second quarter, budgeted sales were $384,600, and actual sales were $387,900. Prepare a static budget report for the second quarter and for the year to date.
A company is working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Payable on April 1 Inventory purchases in March Inventory purchases in April Inventory purchases in May $3,110 $3,659 $6,782 $6,580 Inventory purchases in $6,518 June Inventory purchases in July $7,725 Historically, this company's payment pattern for inventory purchases has been 100% on account which then get paid 15% in the month of purchase and the remainder one month following the purchase. The Accounts Payable on April 1 is the result of inventory purchases in March 2020 and thus is expected to be paid according to the pattern described above. How much should this company expect in Cash Payments for the month of May? (round to the nearest whole dollar/input code 0)
The budgeted units for sales in January, February and March are 25,000, 55,000 and 35,000 andselling price is $ 12, 15 and 20 per unit respectively. Please determine the total budgeted sales in unitsand dollars for the quarter ended March 31, 2021.
Capstone, Inc. is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. Capstone, Inc. gathered the following information from the managers. Sales Unit sales for November 2019 112500 Unit sales for December 2019 104,000 Expected unit sales for January 2020 116,000 Expected unit sales for February 2020 115,500 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 135,000 Expected unit sales for May 2020 145,000 Unit selling price $13.00 Capstone, Inc. likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019,…
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 14,000 hours for production: Variable overhead cost: Indirect factory labor $44,800 Power and light 10,360 Indirect materials 21,000 Total variable overhead cost $ 76,160 Fixed overhead cost: Supervisory salaries $54,380 Depreciation of plant and equipment 14,310 Insurance and property taxes 26,710 Total fixed overhead cost 95,400 Total factory overhead cost $171,560 Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $40,560…
The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Accel Active 45,000|s225 |Units Price Accel Regular 75,000 S1s5 Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expected to be used in the two products: Material Used per Unit Direct Material Unit Accel Active Accel Regular pound One 6. Two pound 4 2 Three pound Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One $15 27,000 lb 35,000 lb Two S7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Hours Per Unit Rate Per Hour Accel…
Windsor Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales are 25%, 25%, 25%, and 25%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $44 per unit beginning in the fourth quarter Sales in the first Quarter of 2023 are expected to be 10% higher than the budgeted sales for the first quarter of 2022 Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2023 are 410.000 kg. Prepare the Sales Budget by quarter for 2022.
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 111,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 113,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 118,000 Expected unit sales for April 2020 124,000 Expected unit sales for May 2020 137,000 Unit selling price $12 Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $181,800.Direct MaterialsDirect materials cost 80 cents per pound. Two pounds of direct materials…
Scannell, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow: (Click the icon to view the budget.) (Click the icon to view additional information.) Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. Plus: Less: More info Scannell, Inc. Inventory, Purchases, and Cost of Goods Sold Budget Nine Months Ended September 30, 2024 Quarter Ended March 31 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $15,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $200,000 during the fourth quarter. The January 1 inv ory was $19,000. Print Done X Data table Cash sales, 30% Credit sales, 70% Total sales $ $ Quarter Ended June 30…
The income statement for the first quarter of 2019 was as follows: Income Statement For the Quarter Ended March 31, 2019 Sales Cost of goods sold Gross profit Operating expenses ales salaries Rent expense Depreciation Utilities Miscellaneous Total operating expenses Net income $52,000 24,000 12,000 3,600 12,800 $720,000 396,000 324,000 104,400 $219,600 Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2020.
Sales budget data for Paige Company are given in BE9.2. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020.
Merchant Industries is preparing its master budget for 2016. Relevant data pertaining to its sales budget are as follows: Sales for the year are expected to total 8,000,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be $2.00 per unit for the first quarter and then be increased to $2.20 per unit in the second quarter. Instructions Prepare a sales budget for 2016 for Merchant Industries.