# Forecast sales volume and sales budget 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: 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 \$17 and the unit selling price for the 12" ×16" frame is expected to increase to \$32, effective January 1, 20Y9. Instructions Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 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. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. Prepare a sales budget for the year ending December 31, 20Y9.

### Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Chapter
Section

### Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 22, Problem 1PA
Textbook Problem
263 views

## Forecast sales volume and sales budgetFor 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: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 \$17 and the unit selling price for the 12" ×16" frame is expected to increase to \$32, effective January 1, 20Y9.InstructionsCompute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format: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. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit.Prepare a sales budget for the year ending December 31, 20Y9.

1.

To determine

Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget.

### Explanation of Solution

Budgeting:

Budgeting is a process to prepare the financial statement by the manager to estimate the organization’s future actions. It is also helpful to satisfy the everyday activities.

The following table shows the increase or decrease of actual unit sales.

 Details Unit sales, Year Ended 20Y6 Increase (Decrease) Actual Over Budget Budget Actual Amount (\$) Percent (%) (A) (B) (C) = (B) – (A) (D) = (C)/(A) × 100 8” × 10” Frame:

2.

To determine

Compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9.

3.

To determine

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

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Find more solutions based on key concepts
Identify and describe the three steps in the delegation process.

Foundations of Business (MindTap Course List)

In what ways is economics a science?

Essentials of Economics (MindTap Course List)

What is IT auditing?

Accounting Information Systems

RETURN ON EQUITY Midwest Packagings ROH last year was only 3%; but its management has developed a new operating...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)