Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 22,785 13,886
Central 6,077 5,096
West 5,238 4,326
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 21,700 $21 $455,700
Central 5,900 21 123,900
West 5,400 21 113,400
Total 33,000 $693,000
12" 16" Frame:
East 13,100 $31 $406,100
Central 5,200 31 161,200
West 4,200 31 130,200
Total 22,500 $697,500
Total revenue from sales $1,390,500

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 $22 and the unit selling price for the 12" 16" frame is expected to increase to $33, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

Unit Sales, Year Ended 20Y8 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 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

20Y8 Actual Units Percentage Increase (Decrease) 20Y9 Budgeted Units (rounded)
8" 10" Frame:
East %
Central %
West %
12" 16" Frame:
East %
Central %
West %

Feedback

To calculate the difference subtract budget from actual sales.

Learning Objective 4.

3. Prepare a sales budget for the year ending December 31, 20Y9.

Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y9
Product and Area Unit Sales Volume Unit Selling Price Total Sales
8" 10" Frame:
East $ $
Central
West
Total $
12" 16" Frame:
East $ $
Central
West
Total $
Total revenue from sales $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Audit And Assurance 2022

Authors: Nick Blackwell, Emile Woolf International

1st Edition

1848439326, 978-1848439320

More Books

Students also viewed these Accounting questions