Dahon Industries is preparing its master budget for 2022. Relevant data pertaining to its sales budget are as follows:

Sales for the year are expected to total 8,000,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be Php2.00 per unit for the first quarter and then be increased to P2.20 per unit in the second quarter.

Instructions

Prepare a sales budget for 2022 for Leaf Industries.

3. Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2023, the following data are developed:

1. Sales:20,000 units; unit selling price: Php30

2. Variable costs per dollar of sales:

Sales commissions 6%

Delivery expense 2%

Advertising 4%

3. Fixed costs per quarter:

Sales salaries Php24,000

Office salaries 19,000

Depreciation 6,000

Insurance 2,000

Utilities 1,000

Instructions:

Create a selling and administrative expense budget for the first quarter of 2023.