2 questions
mes.amer
topic_2.docxForecast Sales Volume and Sales Budget
Raphael Frame Company prepared the following sales budget for the current year:
At the end of December 2014, the following unit sales data were reported for the year:
For the year ending December 31, 2015, unit sales are expected to follow the patterns established during the year ending December 31, 2014. The unit selling price for the 8" × 10" frame is expected to increase to $17 and the unit selling price for the 12" × 16" frame is expected to increase to $32, effective January 1, 2015.
Required:
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2014, over budget.
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Unit Sales, Year Ended 2014 |
Increase (Decrease) Actual Over Budget |
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Budget |
Actual Sales |
Difference |
Percent |
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8" × 10" Frame: |
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East |
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% |
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Central |
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% |
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West |
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% |
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12" × 16" Frame: |
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East |
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% |
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Central |
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% |
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West |
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% |
2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2015, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2015. Round budgeted units to the nearest whole unit.
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2014 Actual Units |
Percentage Increase (Decrease) |
2015 Budgeted Units (rounded) |
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8" × 10" Frame: |
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East |
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% |
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Central |
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% |
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West |
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% |
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12" × 16" Frame: |
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East |
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% |
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Central |
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% |
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West |
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% |
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3. Prepare a sales budget for the year ending December 31, 2015.
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Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July 2014 is summarized as follows:
a. Estimated sales for July by sales territory:
b. Estimated inventories at July 1:
c. Desired inventories at July 31:
d. Direct materials used in production:
e. Anticipated purchase price for direct materials:
f. Direct labor requirements:
Required:
1. Prepare a sales budget for July.
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Gourmet Grill Company Sales Budget For the Month Ending July 31, 2014 |
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Product and Area |
Unit Sales Volume |
Unit Selling Price |
Total Sales |
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Backyard Chef: |
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Maine |
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Vermont |
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New Hampshire |
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Total |
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Master Chef: |
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Maine |
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Vermont |
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New Hampshire |
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Total |
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Total revenue from sales |
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2. Prepare a production budget for July.
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Gourmet Grill Company Production Budget For the Month Ending July 31, 2014 |
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Units |
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Backyard Chef |
Master Chef |
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Expected units to be sold |
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Plus desired inventory, July 31, 2014 |
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Total |
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Less estimated inventory, July 1, 2014 |
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Total units to be produced |
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3. Prepare a direct materials purchases budget for July.
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Gourmet Grill Company Direct Materials Purchases Budget For the Month Ending July 31, 2014 |
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Grates (units) |
Stainless Steel (lbs.) |
Burner Sub- assemblies (units) |
Shelves (units) |
Total |
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Required units for production: |
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Backyard Chef |
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Master Chef |
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Plus desired inventory, July 31, 2014 |
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Total |
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Less estimated inventory, July 1, 2014 |
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Total units to be purchased |
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Unit price |
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Total direct materials to be purchased |
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4. Prepare a direct labor cost budget for July.
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Gourmet Grill Company Direct Labor Cost Budget For the Month Ending July 31, 2014 |
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Stamping Department |
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Forming Department |
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Assembly Department |
Total |
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Hours required for production: |
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Backyard Chef |
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Master Chef |
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Total |
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Hourly rate |
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Total direct labor cost |
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