Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 22, Problem 22.1BPR
Sentinel Systems Inc. prepared the following sales budget for 20Y8:
| Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20 Y8 |
|||
| Unit Sales | Unit Selling | Total | |
| Product and Area | Volume | Price | Sales |
| Home Alert System: | |||
| United States | 1,700 | $200 | $ 340,000 |
| Europe | 580 | 200 | 116,000 |
| Asia | 450 | 200 | 90,000 |
| Total | 2,730 | $ 546,000 | |
| Business Alert System: | |||
| United States | 980 | $750 | $ 735,000 |
| Europe | 350 | 750 | 262,500 |
| Asia | 240 | 750 | 180,000 |
| Total | 1,570 | $1,177,500 | |
| Total revenue from sales | $1,723,500 | ||
At the end of December 20Y8, the following unit sales data were reported for the year:
| Unit Sales | ||
| Home Alert System | Business Alert System | |
| United States | 1,734 | 1,078 |
| Europe | 609 | 329 |
| Asia | 432 | 252 |
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 Home Alert System is expected to increase to $250, and the unit selling price for the Business Alert System is expected to be decreased to $820, effective January 1, 20Y9.
Instructions
- 1. 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:
| Unit Sales, Year Ended 20Y8 | Increase (Decrease) Actual Over Budget | |
| Budget Actual Sales | Amount Percent | |
| Home Alert System: | ||
| United States | ||
| Europe | ||
| Asia | ||
| Business Alert System: | ||
| United States | ||
| Europe | ||
| Asia | ||
- 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 lie 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.
| 20Y8 Actual Units |
Percentage Increase (Decrease) | 20Y9 Budgeted Units (rounded) |
- 3. Prepare a sales budget for the year ending December 31, 20Y9.
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Chapter 22 Solutions
Accounting
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