Working Papers, Chapters 18-26 for Warren/Reeve/Duchacâs Accounting, 27E

27th Edition

ISBN: 9781337272162

Author: Reeve, James M., Duchac, Jonathan, WARREN, Carl S.

Publisher: South-Western College Pub

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Textbook Question

Chapter 22, Problem 22.1BPR

Forecast sales volume and sales budget

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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Chapter 22, Problem 22.5APR

Chapter 22, Problem 22.2BPR

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Chapter 22 Solutions

Working Papers, Chapters 18-26 for Warren/Reeve/Duchacâs Accounting, 27E

Ch. 22 - Prob. 22.1DQ Ch. 22 - Briefly describe the type of human behavior...Ch. 22 - What behavioral problems are associated with...Ch. 22 - What behavioral problems are associated with...Ch. 22 - Under what circumstances is a static budget...Ch. 22 - How do computerized budgeting systems aid firms in...Ch. 22 - Why should the production requirements set forth...Ch. 22 - Why should the timing of direct materials...Ch. 22 - a. Discuss the purpose of the cash budget. b. If...Ch. 22 - Prob. 22.10DQ

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. 22.2BPE Ch. 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. 22.10EX Ch. 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. 22.1CP Ch. 22 - Communication The city of Milton has an annual...Ch. 22 - Prob. 22.4CP Ch. 22 - Static budget for a service company A bank manager...Ch. 22 - Objectives of the master budget Dominos Pizza...

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Solution Summary: The author explains that budgeting is a process to prepare the financial statement by the manager to estimate the organization's future actions.

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Chapter 22 Solutions