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.
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January |
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February |
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March |
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| Budgeted volume increase |
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| Budgeted sales (units |
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| Budgeted selling price |
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| Budgeted total sales |
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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.
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June |
July |
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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.