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1) What are the Total Sales expected for the first quarter?\" You will not have

ID: 2561209 • Letter: 1

Question

1) What are the Total Sales expected for the first quarter?" You will not have time to complete this guide in class! Leaf Industries is preparing its master budget for 2013. Relevant data pertaining to its sales budget are as follows: 1. Sales for the year are expected to total 8,500,000 units. Quarterly sales are 25%, 30%, 15%, and 30%, respectively. The sales price is expected to be $3.00 per unit for the first quarter and then be increased to $3.20 per unit in the second quarter Quarter3rd Quarter 4h Quarter Total for Yr 8,500,000 1Quarter Unit Sales Unit Selling Price Total Sales 3.00 3.20 3.20 3.20 2. Stone Company is preparing its direct labor budget for 2015 from the following production budget based on a calendar year: Quarter Units 0,000 40,000 35,000 65,000 Each unit requires 4 hours of direct labor. The union contract provides for a 10% increase in wage rate to $22 per hour on October 1 Total 65,000210,000 Units produced Direct Labor Time per unit Total required DL Hours DL cost per hour Total Direct labor Cost 0,000 40,000 5,000 HINT: original Wage 1.10 new wage

Explanation / Answer

Sales budget shows the budgeted number of units that the company expects to sell during the next period. It shows the revenue that the company would earn during the next period. This helps the company in knowing the income that the company would earn during the next period.

Particulars

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total

Units sales

              21,25,000.00

25,50,000.00

12,75,000.00

       25,50,000.00

         85,00,000.00

(25%*8500000)

(30%*8500000)

(15%*8500000)

(30%*8500000)

(Total of unit sales)

Formula used is: Quarterly sales % given in question *total units sale)

Unit selling price

                            3.00

               3.20

                3.20

                     3.20

Total Sales

              63,75,000.00

81,60,000.00

40,80,000.00

       81,60,000.00

       267,75,000.00

(Formula used is quarter wise unit sale*unit selling price)

(Total of sales)

Particulars

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total

Units sales

              21,25,000.00

25,50,000.00

12,75,000.00

       25,50,000.00

         85,00,000.00

(25%*8500000)

(30%*8500000)

(15%*8500000)

(30%*8500000)

(Total of unit sales)

Formula used is: Quarterly sales % given in question *total units sale)

Unit selling price

                            3.00

               3.20

                3.20

                     3.20

Total Sales

              63,75,000.00

81,60,000.00

40,80,000.00

       81,60,000.00

       267,75,000.00

(Formula used is quarter wise unit sale*unit selling price)

(Total of sales)