REPRADO,CEDRIC F.

1.) Assume that Leed’s management forecasts sales for the year at 100,000 units (each pair of shoes is one unit). Quarterly
40,000, 20,000, and 25,000 units, reflecting higher demand for shoes in the late spring and again around Christmas. The se
forecasted at $40. Leed’s sales budget would be prepared as by showing the sales unit for each quarter x budgeted sales pri
totals for the year are added from each quarter. Show the sales budget and production budget of Leed
ANSWER: LEED COMPANY
SALES BUDGET
QTR 1 QTR 2 QTR 3 QTR 4 Year
Sales In units 15,000 40,000 20,000 25,000 100,000
Budgeted Price $40 $40 $40 $40 $40
Sales In dollars $600,000 $1,600,000 $800,000 $1,000,000 $4,000,000

LEED COMPANY
PRODUCTION BUDGET
QTR 1 QTR 2 QTR 3 QTR 4 Year

Sales In units 15,000 40,000 20,000 25,000 100,000

ADD:(NEXT QTR Desired Ending
SALES x 40%) Inventory 16,000 8,000 10,000 6,000 6,000

Total Units Needed 31,000 48,000 30,000 31,000 106,000

Less: Beginning Inventory 10,000 16,000 8,000 10,000 10,000

Units to be
produced 21,000 32,000 22,000 21,000 96,000

2.) Illustrate Framecraft company's sales budget for a year.Sales in units per quarter are 10,000 , 30,000 , 10,000, 40,000 respe
estimated a selling price of $5 per unit. Show the sales budget of framecraft company quarterly and
ANSWER: FRAMECRAFT COMPANY
SALES BUDGET
QTR 1 QTR 2 QTR 3 QTR 4 Year
Sales In units 10,000 30,000 10,000 40,000 90,000
Budgeted Price $ 5 5 5 5 5
Sales In dollars 50000 150000 50000 200000 450000

3.) Sample Company is preparing a production budget for the year. The company's policy is to maintain a finished goods inve
month's sales. Sales of 4,000 units are budgeted for April. Use the following monthly production budget for the first quarter to
be produced in January, February, and march
SAMPLE COMPANY
PRODUCTION BUDGET
Jan. Feb. March
Sales In units 3,000 2,400 6,000
 Desired Ending
ADD: Inventory

Total Units Needed

Less: Beginning Inventory

Units to be
produced

ANSWER: SAMPLE COMPANY

PRODUCTION BUDGET
Jan. Feb. March

Sales In units 3,000 2,400 6,000

Desired Ending
ADD: Inventory 1,200 3,000 2,000

Total Units Needed 4,200 5,400 8,000

Less: Beginning Inventory 1,500 1,200 3,000

Units to be
produced 2,700 4,200 5,000

4.) Robin Manufacturing Company is preparing a production budget for several months. Use the following monthly producti
determine how many units should be produced in July, August, September, and third quarte
ROBIN MANUFACTURING COMPANY
PRODUCTION BUDGET
July August September Quarter
Sales In units 70,000 72,000 77,000 219,000
Desired Ending
ADD: Inventory

Total Units Needed

Less: Beginning Inventory

Units to be
produced

ANSWER ROBIN MANUFACTURING COMPANY

PRODUCTION BUDGET
July August September Quarter

Sales In units 70,000 72,000 77,000 219,000

 Desired Ending
ADD: Inventory 10,000 12,000 12,000 12,000

Total Units Needed 80,000 83,000 89,000 231,000

Less: Beginning Inventory 8,000 10,000 11,000 8,000

Units to be
produced 72,000 73,000 78,000 223,000

5.) Butsoy Corporation has ayko and ayza products that has 6000 and 3000 units respectively. The selling price for ayko is $90
total budgeted sales.
ANSWER: BUTSOY COMPANY
SALES BUDGET
AYKO AYZA Total
Sales In units 6,000 3,000
Budgeted Price $ 90 100

Total budgeted sales 540,000 300,000 840,000

6.) Trusler Electronics Inc. produces and sells two models of pocket calculators XQ-103 and XQ-104. The calculators sell for $1
sales budget for the 2 quarters ending in june 30 2011.
UNIT SALES
PRODUCT QTR 1 QTR 2
XQ-103 20,000 25,000
XQ-104 12,000 15,000

ANSWER: TRUSLER ELECTRONICS INC.

SALES BUDGE FOR XQ-103
QTR 1 QTR 2 total
Sales In units 20,000 25,000
Budgeted Price $ 12 12
Sales In dollars 240000 300000 540,000

TRUSLER ELECTRONICS INC.

SALES BUDGE FOR XQ-104
QTR 1 QTR 2 total
Sales In units 12,000 15,000
Budgeted Price $ 25 25
Sales In dollars 300000 375000 675,000
7.) Fletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales forecast is as follows: Q
Qtr4-10,000. The january 1,2011 inventory of HD-240 is 2500 units. Management desires an ending Inventory each quarter e
sales. Prepare a production budget for each quarters.
ANSWER FLETCHER COMPANY
PRODUCTION BUDGET

QTR1 QTR2 QTR3 QTR4

Sales In units 5,000 7,000 8,000 10,000
Desired Ending
ADD: Inventory 3,500 4,000 5,000 2,500

Total Units Needed 8,500 11,000 13,000 12,500

Less: Beginning Inventory 2,500 3,500 4,000 5,000

Units to be
produced 6,000 7,500 9,000 7,500

Managerial
Accounting Chapter
7: Budgeting by
BOOK REFERENCES LUMEN

Managerial
Accounting By Susan
Crosson, Belverd
Needles

Managerial
Accounting Solutions
by Roque

Managerial
Accounting: tools for
business Decision
making by Jerry
J.Weygandt,Paul D.
kimmel, Donald E.
shoes is one unit). Quarterly sales are expected to be 15,000,
in around Christmas. The selling price for each pair of shoes
quarter x budgeted sales price to get the sales in dollars. The
d production budget of Leed's Company.

0,000 , 10,000, 40,000 respectively. Framecraft's manager have

raft company quarterly and for a year.

aintain a finished goods inventory equal to one-half of the next

budget for the first quarter to determine how many units should
march
 following monthly production budget for the third quarter to
September, and third quarter
selling price for ayko is $90 and for ayza is $100. Determine the

04. The calculators sell for $12 and $25, respectively. Prepare a
e 30 2011.
sales forecast is as follows: Qtr1-5,000, Qtr2-7,000 , Qtr3-8,000 ,
ding Inventory each quarter equal to 50% of the next quarter's
quarters.