Accounting
27th Edition
ISBN: 9780357155899
Author: Carl S. Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning US
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Textbook Question
Chapter 22, Problem 22.1BPR
Sentinel Systems Inc. prepared the following sales budget for 20Y8:
| Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20 Y8 |
|||
| Unit Sales | Unit Selling | Total | |
| Product and Area | Volume | Price | Sales |
| Home Alert System: | |||
| United States | 1,700 | $200 | $ 340,000 |
| Europe | 580 | 200 | 116,000 |
| Asia | 450 | 200 | 90,000 |
| Total | 2,730 | $ 546,000 | |
| Business Alert System: | |||
| United States | 980 | $750 | $ 735,000 |
| Europe | 350 | 750 | 262,500 |
| Asia | 240 | 750 | 180,000 |
| Total | 1,570 | $1,177,500 | |
| Total revenue from sales | $1,723,500 | ||
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 December 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 decreased to $820, effective January 1, 20Y9.
Instructions
- 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format:
| Unit Sales, Year Ended 20Y8 | Increase (Decrease) Actual Over Budget | |
| Budget Actual Sales | Amount Percent | |
| Home Alert System: | ||
| United States | ||
| Europe | ||
| Asia | ||
| Business Alert System: | ||
| United States | ||
| Europe | ||
| Asia | ||
- 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 lie 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 Actual Units |
Percentage Increase (Decrease) | 20Y9 Budgeted Units (rounded) |
- 3. Prepare a sales budget for the year ending December 31, 20Y9.
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forecast Sales Volume and Sales BudgetSentinel Systems Inc. prepared the following sales budget for 20Y8:Sentinel Systems Inc.Sales BudgetFor the Year Ending December 31, 20Y8Product and AreaUnit SalesVolumeUnit SellingPriceTotal SalesHome Alert System:United States1,700$200$ 340,000Europe580200116,000Asia45020090,000Total 2,730$ 546,000Business Alert System:United States980$750$ 735,000Europe350750262,500Asia240750180,000Total 1,570$1,177,500Total revenue from sales$1,723,500At the end of December 20Y8, the following unit sales data were reported for the year:Unit SalesHome AlertSystemBusiness AlertSystemUnited States1,7341,078Europe609329
Asia432252
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 Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be increased to $820, effective January 1,…
PREPARE THE FOOLOWING
1- PRODUCTION BUDGET
2-SALES BUDGET
Netco's sales budget for the coming year is as follows.
Item Volume in Units Sales Price Sales Revenue
1
200,000
2
150,000
300,000
3
Total sales revenue
Select one:
$50
10
30
a. $850,000
b. $1,050,000
c. $550,000
d. $750,000
$10,000,000
1,500,000
Items 1 and 3 are different models of the same product. Item 2 is a complement to Item 1. Past experience indicates that the sales volume of Item 2 relative to the sales volume of Item 1 is fairly constant. Netco is
considering a 10% price increase for the coming year for Item 1, which will cause sales of Item 1 to decline by 20% while simultaneously causing sales of Item 3 to increase by 5%. If Netco institutes the price
increase for Item 1, total sales revenue will decrease by
9,000,000
$20,500,000
Chapter 22 Solutions
Accounting
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Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Production budget Daybook Inc. projected sales of...Ch. 22 - Prob. 22.2BPECh. 22 - Direct materials purchases budget Daybook Inc....Ch. 22 - Direct materials purchases budget Magnolia Candle...Ch. 22 - Direct labor cost budget Daybook Inc. budgeted...Ch. 22 - Direct labor cost budget Magnolia Candle Inc....Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Cash budget Daybook Inc. collects 30% of its sales...Ch. 22 - Cash budget Magnolia Candle Inc. pays 10% of its...Ch. 22 - Personal budget At the beginning of the school...Ch. 22 - Flexible budget for selling and administrative...Ch. 22 - Static budget versus flexible budget The...Ch. 22 - Flexible budget for Assembly Department Steelcase...Ch. 22 - Production budget Weightless Inc. produces a small...Ch. 22 - Sales and production budgets Sonic Inc....Ch. 22 - Professional fees earned budget for a service...Ch. 22 - Professional labor cost budget for a service...Ch. 22 - Direct materials purchases budget Lorenzo's Frozen...Ch. 22 - Prob. 22.10EXCh. 22 - Direct materials purchases budget Anticipated...Ch. 22 - Direct labor cost budget MatchPoint Racket Company...Ch. 22 - Direct labor budget for a service business...Ch. 22 - Production and direct labor cost budgets Levi...Ch. 22 - Factory overhead cost budget Sweet Tooth Candy...Ch. 22 - Cost of goods sold budget Wilmington Chemical...Ch. 22 - Cost of goods sold budget The controller of...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Capital expenditures budget On January 1, 20Y2,...Ch. 22 - Forecast sales volume and sales budget For 20Y6,...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Sonoma Housewares...Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Forecast sales volume and sales budget Sentinel...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Mercury Shoes Inc....Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Prob. 22.1CPCh. 22 - Communication The city of Milton has an annual...Ch. 22 - Prob. 22.4CPCh. 22 - Static budget for a service company A bank manager...Ch. 22 - Objectives of the master budget Dominos Pizza...
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