Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 22, Problem 22.1APR
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 | 8,755 | 3,686 |
| Central | 6,510 | 3,090 |
| West | 12,348 | 5,616 |
| Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 | |||
| Unit Sales | Unit Selling | Total | |
| Product and Area | Volume | Price | Sales |
| 8"×10" Frame: | |||
| East | 8,500 | $16 | $136,000 |
| Central | 6,200 | 16 | 99,200 |
| West | 12,600 | 16 | 201,600 |
| Total | 27,300 | $436,800 | |
| 12" x 16" Frame: | |||
| East | 3,800 | $30 | 5114,000 |
| Central | 3,000 | 30 | 90,000 |
| West | 5,400 | 30 | 162,000 |
| Total | 12,200 | $366,000 | |
| Total revenue from sales | $802,800 | ||
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 the 8" ×10"frame is expected to increase to $17, and the unit selling price for the 12" ×16" frame is expected to increase to $32, effective January 1, 20Y7.
Instructions
- 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget. Place your answers in a columnar table with the following format:
| Unit Sales, Year Ended 20Y6 | Increase (Decrease) Actual Over Budget | |
| Budget Actual Sales | Amount Percent | |
| 8" ×10" Frame: | ||
| East | ||
| Central | ||
| West | ||
| 12"×16" Frame: | ||
| East | ||
| Central | ||
| West |
- 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. 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.
| 20Y6 | Percentage | 20Y7 |
| Actual | Increase | Budgeted |
| Units | (Decrease! | Units (rounded) |
- 3. Prepare a sales budget for the year ending December 31, 20Y7.
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Förecast Sales volume and
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" x 10"
12" x 16"
Frame
Frame
East
20,394
15,496
Central
5,353
6,272
West
4,850
5,304
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Unit
Unit Sales
Product and Area
Selling
Total Sales
Volume
Price
8" x 10" Frame:
East
19,800
$31
$613,800
Central
5,300
31
164,300
West
5,000
31
155,000.
Total
30,100
$933,100
12" x 16" Frame:
East
14,900
$32
$476,800
Central
6,400
32
204,800
West
5,200
32
166,400
Total
26.500
$848.000
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:
Line Item Description Unit Sales
8" × 10"
Frame Unit Sales
12" × 16"
Frame
East 8,755 3,686
Central 6,510 3,090
West 12,348 5,616
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y8
Product and Area Unit Sales
Volume Unit Selling
Price Total Sales
8" × 10" Frame:
East 8,500 $16 $136,000
Central 6,200 16 99,200
West 12,600 16 201,600
Total 27,300 $436,800
12" × 16" Frame:
East 3,800 $30 $114,000
Central 3,000 30 90,000
West 5,400 30 162,000
Total 12,200 $366,000
Total revenue from sales $802,800
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 $17…
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
8,755
3,686
Central
6,510
3,090
West
12,348
5,616
Raphael Frame CompanySales BudgetFor the Year Ending December 31, 20Y6
Product and Area
Unit SalesVolume
Unit SellingPrice
Total Sales
8" × 10" Frame:
East
8,500
$16
$136,000
Central
6,200
16
99,200
West
12,600
16
201,600
Total
27,300
$436,800
12" × 16" Frame:
East
3,800
$30
$114,000
Central
3,000
30
90,000
West
5,400
30
162,000
Total
12,200
$366,000
Total revenue from sales
$802,800
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 the…
Chapter 22 Solutions
Accounting
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