Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $656, and the S12L5 sells for $414. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 800 1,300 Second quarter, 20Y1 2,200 1,400 Third quarter, 20Y1 5,600 5,300 Fourth quarter, 20Y1 4,600 3,900 First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer. Stillwater Designs Sales Budget For the Year Ended December 31, 20Y1 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year S12L7: Units Price $ $ $ $ $ Sales $ $ $ $ $ S12L5: Units Price $ $ $ $ $ Sales $ $ $ $ $ Total sales $ $ $ $ $ How will Stillwater Designs use this sales budget? Stillwater Designs will use the sales budget in planning as the basis for the production budget. The company can also compare actual sales against the budget to see if expectations were achieved. Both 1 and 2 None of the above
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.
Sales Budget
Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $656, and the S12L5 sells for $414. Projected sales (number of speakers) for the coming five quarters are as follows:
| S12L7 | S12L5 | |
| First quarter, 20Y1 | 800 | 1,300 |
| Second quarter, 20Y1 | 2,200 | 1,400 |
| Third quarter, 20Y1 | 5,600 | 5,300 |
| Fourth quarter, 20Y1 | 4,600 | 3,900 |
| First quarter, 20Y2 | 900 | 1,200 |
The vice president of sales believes that the projected sales are realistic and can be achieved by the company.
Required:
Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer.
| Stillwater Designs | |||||
| Sales Budget | |||||
| For the Year Ended December 31, 20Y1 | |||||
| 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | Year | |
| S12L7: | |||||
| Units | |||||
| Price | $ | $ | $ | $ | $ |
| Sales | $ | $ | $ | $ | $ |
| S12L5: | |||||
| Units | |||||
| Price | $ | $ | $ | $ | $ |
| Sales | $ | $ | $ | $ | $ |
| Total sales | $ | $ | $ | $ | $ |
How will Stillwater Designs use this sales budget?
- Stillwater Designs will use the sales budget in planning as the basis for the production budget.
- The company can also compare actual sales against the budget to see if expectations were achieved.
- Both 1 and 2
- None of the above
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