Prepare ABC Company’s budgeted unit sales and total sales volume for the first quarter of the coming year.
ABC Company’s actual unit sales in the current year for January, February, and March were 15,700, 12,700, and 18,700 units, respectively. Current year selling price is $60. An analysis of general economic trends and specific initiatives at ABC forecasts increases for the coming budget year: sales volume by 10% and sales price by 5%.
Required:
Prepare ABC Company’s budgeted unit sales and total sales volume for the first quarter of the coming year.
| January | February | March | Total | |||||
| Current sales (units) | ||||||||
| Budgeted volume increase | % | % | % | % | ||||
| Budgeted sales (units | ||||||||
| Budgeted selling price | ||||||||
| Budgeted total sales |
PART-2
ABC Company’s budgeted sales for June, July, and August are 16,000, 20,000, and 18,000 units, respectively. ABC requires 30% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 4,800 units.
Required:
Calculate the number of units to be produced in June and July.
| JuneJulyNumber of units |
PART-3
ABC Company’s budgeted sales for June, July, and August are 15,000, 19,000, and 16,700 units, respectively. ABC requires 40% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 6,000 units. Each unit that ABC Company produces uses 4 pounds of raw material. ABC requires 35% of the next month’s budgeted production as raw material inventory each month.
Required:
Calculate the number of pounds of raw material to be purchased in June.
| Number of pounds |
