Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 21, Problem 21.1BPR
Sentinel systems Inc. prepared the following sales budget for 20Y8:
At the end of December 20Y8, the following unit sales data were reported for the year:
| Unit Sales | ||
| Home Alert System |
Business Alert System |
|
| United States | 1,734 | 1,078 |
| Europe | 609 | 329 |
| Asia | 432 | 252 |
For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased $820, effective January 1, 20Y9.
Instructions
- 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 31, 20Y8, over budget. Place your answers in a columnar table with the following format:
- 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. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit.
| 20Y8 | Percentage | 20Y9 |
| Actual | Increase | Budgeted |
| Units | (Decrease) | Units (rounded) |
- 3. Prepare a sales budget for the year ending December 31, 201Y9
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Forecast Sales Volume and Sales Budget
For 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:
8" x 10"
Unit Sales
12" x 16"
Frame
Frame
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19,635
11,978
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4,635
3,136
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3,977
2,369
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8" x 10" Frame:
East
Central
West
Total
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Unit Sales
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Unit
Selling
Price
Total
Sales
18,700
$14
$261,800
4,500
14
63,000
4,100
14
57,400
27,300
$382,200
12" x 16" Frame:
East
Central
11,300
3,200
$29
$327,700
29
West
Total
Total revenue from sales
2,300
16,800
29
92,800
66,700
$487,200
$869,400
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" x 10" frame is expected to increase to $15 and the unit selling price for the 12"
frame is expected to increase to $31, effective January 1,…
Forecast Sales Volume and Sales Budget
For 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 CompanySales BudgetFor the Year Ending December 31, 20Y8
Product and Area
Unit SalesVolume
Unit SellingPrice
Total 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…
Forecast Sales Volume and Sales Budget
For 20Y6, Raphael Frame Company prepared the sales budget that follows.
At the end of December 20Y6, the following unit sales data were reported for the year:
Unit Sales
8" × 10" Frame
12" × 16"Frame
East
29,664
14,144
Central
7,272
3,822
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6,402
2,958
Raphael Frame CompanySales BudgetFor the Year Ending December 31, 20Y6
Product and Area
Unit SalesVolume
Unit SellingPrice
Total Sales
8" × 10" Frame:
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28,800
$20
$576,000
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7,200
20
144,000
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6,600
20
132,000
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13,600
$35
$476,000
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3,900
35
136,500
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35
101,500
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20,400
$714,000
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For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for…
Chapter 21 Solutions
Financial & Managerial Accounting
Ch. 21 - Prob. 1DQCh. 21 - Briefly describe the type of human behavior...Ch. 21 - What behavioral problems are associated with...Ch. 21 - What behavioral problems are associated with...Ch. 21 - Under what circumstances would a static budget be...Ch. 21 - How do computerized budgeting systems aid firms in...Ch. 21 - Why should the production requirements Set forth...Ch. 21 - Prob. 8DQCh. 21 - A. Discuss the purpose of the cash budget. B. If...Ch. 21 - Give an example of how the capital expenditures...
Ch. 21 - Flexible budgeting At the beginning of the period,...Ch. 21 - Production budget Pasadena Candle Inc. projected...Ch. 21 - Direct materials purchases budget Pasadena Candle...Ch. 21 - Direct labor cost budget Pasadena Candle Inc....Ch. 21 - Cost of goods sold budget Prepare a cost of goods...Ch. 21 - Prob. 21.6BECh. 21 - Personal budget At the beginning of the school...Ch. 21 - Flexible budget for selling and administrative...Ch. 21 - Static budget versus flexible budget The...Ch. 21 - Flexible budget for Assembly Department Steelcase...Ch. 21 - Production budget Weightless Inc. produces a Bath...Ch. 21 - Sales and production budgets Sonic Inc....Ch. 21 - Prob. 21.7EXCh. 21 - Prob. 21.8EXCh. 21 - Prob. 21.9EXCh. 21 - Prob. 21.10EXCh. 21 - Direct materials purchases budget Anticipated...Ch. 21 - Direct labor cost budget Ace Racket Company...Ch. 21 - Production and direct labor cost budgets Levi...Ch. 21 - Factory overhead cost budget Sweet Tooth Candy...Ch. 21 - Cost of goods sold budget Delaware Chemical...Ch. 21 - Cost of goods sold budget The controller of...Ch. 21 - Prob. 21.17EXCh. 21 - Schedule of cash collections of accounts...Ch. 21 - Schedule of cash payments for a service company...Ch. 21 - Prob. 21.20EXCh. 21 - Capital expenditures budget On January 1, 20Y6,...Ch. 21 - Forecast sates volume and sales budget For 20Y8,...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Bridgeport...Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Forecast sales volume and sales budget Sentinel...Ch. 21 - Sales, production, direct materials purchases, and...Ch. 21 - Budgeted income statement and supporting budgets...Ch. 21 - Cash budget The controller of Mercury Shoes Inc....Ch. 21 - Budgeted income statement and balance sheet As a...Ch. 21 - Nursing staff budget Mercy Hospital staffs its...Ch. 21 - Parking lot staff budget Adventure Park is a large...Ch. 21 - Prob. 3ADMCh. 21 - Prob. 21.1TIFCh. 21 - Communication The city of .Milton has an annual...
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