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Summer Fun T - Shirt Shop has very seasonal sales. For 2 0 1 4 , management is trying to decide whether to establish a
Summer Fun TShirt Shop has very seasonal sales. For management is trying to decide whether to establish a sales budget based on average sales or on sales estimated by quarter. The unit sales for are expected to be percent higher than sales. Unit shirt sales by quarter for were as follows:
Children's Women's Men's Total
Winter quarter
Spring quarter
Summer quarter
Fall quarter
Total
Childrens Tshirts sell for $ each, womens sell for $ and mens sell for $
Assuming a percent increase in sales, prepare a sales budget for each quarter of using the following:
a Average quarterly sales. Hint: Winter quarter childrens shirts are X
Summer Fun TShirt Shop
Sales Budget
Quarterly for
Winter Spring Summer Fall Year Totals
Units:
Children's Answer
Answer
Answer
Answer
Answer
Women's Answer
Answer
Answer
Answer
Answer
Men's Answer
Answer
Answer
Answer
Answer
Dollars:
Children's Answer
Answer
Answer
Answer
Answer
Women's Answer
Answer
Answer
Answer
Answer
Men's Answer
Answer
Answer
Answer
Answer
Totals Answer
Answer
Answer
Answer
Answer
b Actual quarterly sales. Hint: Winter quarter childrens shirts are X
Summer Fun TShirt Shop
Sales Budget
Quarterly for
Winter Spring Summer Fall Year Totals
Units:
Children's Answer
Answer
Answer
Answer
Answer
Women's Answer
Answer
Answer
Answer
Answer
Men's Answer
Answer
Answer
Answer
Answer
Dollars:
Children's Answer
Answer
Answer
Answer
Answer
Women's Answer
Answer
Answer
Answer
Answer
Men's Answer
Answer
Answer
Answer
Answer
Totals Answer
Answer
Answer
Answer
Answer
c Suggest advantages of each method.
Which one is not an advantage to preparing a sales budget using average quarterly sales.
Reduces the possibility of being out of stock in most quarters
Minimizes the investment in inventory during lowsales quarters
Smoothes the investment in inventory throughout the year
Simplifies the purchasing of inventory
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Cost Accounting Foundations And Evolutions
Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn
10th Edition
1618533533, 9781618533531
