Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y6, the following unit sales data were reported for the year: Unit Sales 8" × 10" Frame 12" × 16" Frame East 25,200 14,098 Central 6,695 3,920 West 5,760 2,958 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 24,000 $31 $744,000 Central 6,500 31 201,500 West 6,000 31 186,000 Total 36,500 $1,131,500 12" × 16" Frame: East 13,300 $46 $611,800 Central 4,000 46 184,000 West 2,900 46 133,400 Total 20,200 $929,200 Total revenue from sales $2,060,700 For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" × 10" frame is expected to increase to $32 and the unit selling price for the 12" × 16" frame is expected to increase to $48, effective January 1, 20Y7. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, 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 20Y6 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" × 10" Frame: East fill in the blank 8ec8d2f48f83f92_1 fill in the blank 8ec8d2f48f83f92_2 fill in the blank 8ec8d2f48f83f92_3 fill in the blank 8ec8d2f48f83f92_4% Central fill in the blank 8ec8d2f48f83f92_5 fill in the blank 8ec8d2f48f83f92_6 fill in the blank 8ec8d2f48f83f92_7 fill in the blank 8ec8d2f48f83f92_8% West fill in the blank 8ec8d2f48f83f92_9 fill in the blank 8ec8d2f48f83f92_10 fill in the blank 8ec8d2f48f83f92_11 fill in the blank 8ec8d2f48f83f92_12% 12" × 16" Frame: East fill in the blank 8ec8d2f48f83f92_13 fill in the blank 8ec8d2f48f83f92_14 fill in the blank 8ec8d2f48f83f92_15 fill in the blank 8ec8d2f48f83f92_16% Central fill in the blank 8ec8d2f48f83f92_17 fill in the blank 8ec8d2f48f83f92_18 fill in the blank 8ec8d2f48f83f92_19 fill in the blank 8ec8d2f48f83f92_20% West fill in the blank 8ec8d2f48f83f92_21 fill in the blank 8ec8d2f48f83f92_22 fill in the blank 8ec8d2f48f83f92_23 fill in the blank 8ec8d2f48f83f92_24% 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit. 20Y6 Actual Units Percentage Increase (Decrease) 20Y7 Budgeted Units (rounded) 8" × 10" Frame: East fill in the blank 8ec8d2f48f83f92_25 fill in the blank 8ec8d2f48f83f92_26% fill in the blank 8ec8d2f48f83f92_27 Central fill in the blank 8ec8d2f48f83f92_28 fill in the blank 8ec8d2f48f83f92_29% fill in the blank 8ec8d2f48f83f92_30 West fill in the blank 8ec8d2f48f83f92_31 fill in the blank 8ec8d2f48f83f92_32% fill in the blank 8ec8d2f48f83f92_33 12" × 16" Frame: East fill in the blank 8ec8d2f48f83f92_34 fill in the blank 8ec8d2f48f83f92_35% fill in the blank 8ec8d2f48f83f92_36 Central fill in the blank 8ec8d2f48f83f92_37 fill in the blank 8ec8d2f48f83f92_38% fill in the blank 8ec8d2f48f83f92_39 West fill in the blank 8ec8d2f48f83f92_40 fill in the blank 8ec8d2f48f83f92_41% fill in the blank 8ec8d2f48f83f92_42 3. Prepare a sales budget for the year ending December 31, 20Y7. Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y7 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East fill in the blank 30e5c4fc0ffcf9b_1 $fill in the blank 30e5c4fc0ffcf9b_2 $fill in the blank 30e5c4fc0ffcf9b_3 Central fill in the blank 30e5c4fc0ffcf9b_4 fill in the blank 30e5c4fc0ffcf9b_5 fill in the blank 30e5c4fc0ffcf9b_6 West fill in the blank 30e5c4fc0ffcf9b_7 fill in the blank 30e5c4fc0ffcf9b_8 fill in the blank 30e5c4fc0ffcf9b_9 Total fill in the blank 30e5c4fc0ffcf9b_10 $fill in the blank 30e5c4fc0ffcf9b_11 12" × 16" Frame: East fill in the blank 30e5c4fc0ffcf9b_12 $fill in the blank 30e5c4fc0ffcf9b_13 $fill in the blank 30e5c4fc0ffcf9b_14 Central fill in the blank 30e5c4fc0ffcf9b_15 fill in the blank 30e5c4fc0ffcf9b_16 fill in the blank 30e5c4fc0ffcf9b_17 West fill in the blank 30e5c4fc0ffcf9b_18 fill in the blank 30e5c4fc0ffcf9b_19 fill in the blank 30e5c4fc0ffcf9b_20 Total fill in the blank 30e5c4fc0ffcf9b_21 $fill in the blank 30e5c4fc0ffcf9b_22 Total revenue from sales $fill in the blank 30e5c4fc0ffcf9b_23

Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y6, the following unit sales data were reported for the year: Unit Sales 8" × 10" Frame 12" × 16" Frame East 25,200 14,098 Central 6,695 3,920 West 5,760 2,958 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 24,000 $31 $744,000 Central 6,500 31 201,500 West 6,000 31 186,000 Total 36,500 $1,131,500 12" × 16" Frame: East 13,300 $46 $611,800 Central 4,000 46 184,000 West 2,900 46 133,400 Total 20,200 $929,200 Total revenue from sales $2,060,700 For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" × 10" frame is expected to increase to $32 and the unit selling price for the 12" × 16" frame is expected to increase to $48, effective January 1, 20Y7. Required: 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, 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 20Y6 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent 8" × 10" Frame: East fill in the blank 8ec8d2f48f83f92_1 fill in the blank 8ec8d2f48f83f92_2 fill in the blank 8ec8d2f48f83f92_3 fill in the blank 8ec8d2f48f83f92_4% Central fill in the blank 8ec8d2f48f83f92_5 fill in the blank 8ec8d2f48f83f92_6 fill in the blank 8ec8d2f48f83f92_7 fill in the blank 8ec8d2f48f83f92_8% West fill in the blank 8ec8d2f48f83f92_9 fill in the blank 8ec8d2f48f83f92_10 fill in the blank 8ec8d2f48f83f92_11 fill in the blank 8ec8d2f48f83f92_12% 12" × 16" Frame: East fill in the blank 8ec8d2f48f83f92_13 fill in the blank 8ec8d2f48f83f92_14 fill in the blank 8ec8d2f48f83f92_15 fill in the blank 8ec8d2f48f83f92_16% Central fill in the blank 8ec8d2f48f83f92_17 fill in the blank 8ec8d2f48f83f92_18 fill in the blank 8ec8d2f48f83f92_19 fill in the blank 8ec8d2f48f83f92_20% West fill in the blank 8ec8d2f48f83f92_21 fill in the blank 8ec8d2f48f83f92_22 fill in the blank 8ec8d2f48f83f92_23 fill in the blank 8ec8d2f48f83f92_24% 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit. 20Y6 Actual Units Percentage Increase (Decrease) 20Y7 Budgeted Units (rounded) 8" × 10" Frame: East fill in the blank 8ec8d2f48f83f92_25 fill in the blank 8ec8d2f48f83f92_26% fill in the blank 8ec8d2f48f83f92_27 Central fill in the blank 8ec8d2f48f83f92_28 fill in the blank 8ec8d2f48f83f92_29% fill in the blank 8ec8d2f48f83f92_30 West fill in the blank 8ec8d2f48f83f92_31 fill in the blank 8ec8d2f48f83f92_32% fill in the blank 8ec8d2f48f83f92_33 12" × 16" Frame: East fill in the blank 8ec8d2f48f83f92_34 fill in the blank 8ec8d2f48f83f92_35% fill in the blank 8ec8d2f48f83f92_36 Central fill in the blank 8ec8d2f48f83f92_37 fill in the blank 8ec8d2f48f83f92_38% fill in the blank 8ec8d2f48f83f92_39 West fill in the blank 8ec8d2f48f83f92_40 fill in the blank 8ec8d2f48f83f92_41% fill in the blank 8ec8d2f48f83f92_42 3. Prepare a sales budget for the year ending December 31, 20Y7. Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y7 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East fill in the blank 30e5c4fc0ffcf9b_1 $fill in the blank 30e5c4fc0ffcf9b_2 $fill in the blank 30e5c4fc0ffcf9b_3 Central fill in the blank 30e5c4fc0ffcf9b_4 fill in the blank 30e5c4fc0ffcf9b_5 fill in the blank 30e5c4fc0ffcf9b_6 West fill in the blank 30e5c4fc0ffcf9b_7 fill in the blank 30e5c4fc0ffcf9b_8 fill in the blank 30e5c4fc0ffcf9b_9 Total fill in the blank 30e5c4fc0ffcf9b_10 $fill in the blank 30e5c4fc0ffcf9b_11 12" × 16" Frame: East fill in the blank 30e5c4fc0ffcf9b_12 $fill in the blank 30e5c4fc0ffcf9b_13 $fill in the blank 30e5c4fc0ffcf9b_14 Central fill in the blank 30e5c4fc0ffcf9b_15 fill in the blank 30e5c4fc0ffcf9b_16 fill in the blank 30e5c4fc0ffcf9b_17 West fill in the blank 30e5c4fc0ffcf9b_18 fill in the blank 30e5c4fc0ffcf9b_19 fill in the blank 30e5c4fc0ffcf9b_20 Total fill in the blank 30e5c4fc0ffcf9b_21 $fill in the blank 30e5c4fc0ffcf9b_22 Total revenue from sales $fill in the blank 30e5c4fc0ffcf9b_23

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1PA

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Forecast Sales Volume and Sales Budget

For 20Y6, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y6, the following unit sales data were reported for the year:

	Unit Sales
	8" × 10" Frame	12" × 16" Frame
East	25,200		14,098
Central	6,695		3,920
West	5,760		2,958

Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y6
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
8" × 10" Frame:
East	24,000		$31		$744,000
Central	6,500		31		201,500
West	6,000		31		186,000
Total	36,500			$1,131,500

12" × 16" Frame:
East	13,300		$46		$611,800
Central	4,000		46		184,000
West	2,900		46		133,400
Total	20,200			$929,200
Total revenue from sales			$2,060,700

For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" × 10" frame is expected to increase to $32 and the unit selling price for the 12" × 16" frame is expected to increase to $48, effective January 1, 20Y7.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, 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 20Y6	Increase (Decrease) Actual Over Budget
	Budget	Actual Sales	Amount	Percent
8" × 10" Frame:
	East	fill in the blank 8ec8d2f48f83f92_1	fill in the blank 8ec8d2f48f83f92_2	fill in the blank 8ec8d2f48f83f92_3	fill in the blank 8ec8d2f48f83f92_4%
	Central	fill in the blank 8ec8d2f48f83f92_5	fill in the blank 8ec8d2f48f83f92_6	fill in the blank 8ec8d2f48f83f92_7	fill in the blank 8ec8d2f48f83f92_8%
	West	fill in the blank 8ec8d2f48f83f92_9	fill in the blank 8ec8d2f48f83f92_10	fill in the blank 8ec8d2f48f83f92_11	fill in the blank 8ec8d2f48f83f92_12%
12" × 16" Frame:
	East	fill in the blank 8ec8d2f48f83f92_13	fill in the blank 8ec8d2f48f83f92_14	fill in the blank 8ec8d2f48f83f92_15	fill in the blank 8ec8d2f48f83f92_16%
	Central	fill in the blank 8ec8d2f48f83f92_17	fill in the blank 8ec8d2f48f83f92_18	fill in the blank 8ec8d2f48f83f92_19	fill in the blank 8ec8d2f48f83f92_20%
	West	fill in the blank 8ec8d2f48f83f92_21	fill in the blank 8ec8d2f48f83f92_22	fill in the blank 8ec8d2f48f83f92_23	fill in the blank 8ec8d2f48f83f92_24%

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

	20Y6 Actual Units	Percentage Increase (Decrease)	20Y7 Budgeted Units (rounded)
8" × 10" Frame:
	East	fill in the blank 8ec8d2f48f83f92_25	fill in the blank 8ec8d2f48f83f92_26%	fill in the blank 8ec8d2f48f83f92_27
	Central	fill in the blank 8ec8d2f48f83f92_28	fill in the blank 8ec8d2f48f83f92_29%	fill in the blank 8ec8d2f48f83f92_30
	West	fill in the blank 8ec8d2f48f83f92_31	fill in the blank 8ec8d2f48f83f92_32%	fill in the blank 8ec8d2f48f83f92_33
12" × 16" Frame:
	East	fill in the blank 8ec8d2f48f83f92_34	fill in the blank 8ec8d2f48f83f92_35%	fill in the blank 8ec8d2f48f83f92_36
	Central	fill in the blank 8ec8d2f48f83f92_37	fill in the blank 8ec8d2f48f83f92_38%	fill in the blank 8ec8d2f48f83f92_39
	West	fill in the blank 8ec8d2f48f83f92_40	fill in the blank 8ec8d2f48f83f92_41%	fill in the blank 8ec8d2f48f83f92_42

3. Prepare a sales budget for the year ending December 31, 20Y7.

Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y7
Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
8" × 10" Frame:
East	fill in the blank 30e5c4fc0ffcf9b_1	$fill in the blank 30e5c4fc0ffcf9b_2	$fill in the blank 30e5c4fc0ffcf9b_3
Central	fill in the blank 30e5c4fc0ffcf9b_4	fill in the blank 30e5c4fc0ffcf9b_5	fill in the blank 30e5c4fc0ffcf9b_6
West	fill in the blank 30e5c4fc0ffcf9b_7	fill in the blank 30e5c4fc0ffcf9b_8	fill in the blank 30e5c4fc0ffcf9b_9
Total	fill in the blank 30e5c4fc0ffcf9b_10		$fill in the blank 30e5c4fc0ffcf9b_11
12" × 16" Frame:
East	fill in the blank 30e5c4fc0ffcf9b_12	$fill in the blank 30e5c4fc0ffcf9b_13	$fill in the blank 30e5c4fc0ffcf9b_14
Central	fill in the blank 30e5c4fc0ffcf9b_15	fill in the blank 30e5c4fc0ffcf9b_16	fill in the blank 30e5c4fc0ffcf9b_17
West	fill in the blank 30e5c4fc0ffcf9b_18	fill in the blank 30e5c4fc0ffcf9b_19	fill in the blank 30e5c4fc0ffcf9b_20
Total	fill in the blank 30e5c4fc0ffcf9b_21		$fill in the blank 30e5c4fc0ffcf9b_22
Total revenue from sales			$fill in the blank 30e5c4fc0ffcf9b_23

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