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Problem 1 16 points Total Prepare the Budgets given the following information Budgeted sales are expected to be: January 200 Units February 300 Units March 400 Units April 300 Units May 400 Units Selling Price $10 Per unit A. Prepare the sales Budget (5 points) Sales Budget January February March Quarter Budgeted sales in units 200 300 400 900 Times selling price per unit $10 $10 $10 $10 Budgeted sells in dollars $2,000 $3,000 $4,000 $9,000 B. Prepare the Production Budget (5 points)

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Answer:

Sales Budget for January, February and March

                                                    January      February      March

Budgeted Sales Units                    200             300            400

Budgeted Selling Price                   $10              $10             $10

Budgeted Sales Revenue           $2,000        $3,000      $4,000

Production Budget for January, February and March.

                                                    January      February      March

Budgeted Sales Units                    200             300            400

Budgeted Production Units           200             300            400

Explanation:

Sales Budget

This is the first budget that a company prepares from which all other budgets are created.

Production Budget

Since there are no closing or opening inventory targets, Budgeted Sales units equal budgeted production units.

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