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galina1969 [7]
4 years ago
13

The ColorfulFurniture Company manufactures modern wood frame lounge sofas. Currently the company makes only one size of three-se

at sofas, which is 35 inches deep by 90 inches wide. The final product consists of a routed, sanded, assembled, and stained wood sofa. Direct materials include oak wood frames and pre-made cushions. Other materials, such as wood legs, screws, hinges, sand paper, stain, and packaging, are treated as indirect materials. ColorfulFurniture is preparing budgets for the second quarter ending June 30, 2020. For each requirement below prepare budgets by month for April, May, and June, and a total budget for the quarter.
The previous year’s sales (2019) for the corresponding period were:

a. April 540 sofas
b. May 680 sofas
c. June 920 sofas
d. July 1220 sofas
e. August 750 sofas
Business
1 answer:
poizon [28]4 years ago
6 0

Answer:

The below piece of information is missing from the question:

The company expects the above volume of lounge sofa sales to increase by 10% for  the period April 2020 – August 2020. The budgeted selling price for 2020 is $850.00  per sofa. The company expects 15% of its sales to be cash (COD) sales. The  remaining 85% of sales will be made on credit.

Prepare a Sales Budget for

Colorful Furniture.

Budgeted sales for April 2020 is $504,900  

Budgeted sales for May  2020  is $635,800  

Budgeted sales in June 2020 is $860,200  

Explanation:

In preparing the attached sales budget,I applied the percentage increase of 10% to previous year second quarter figures,then multiplied the sales quantity by selling price set for 2020 which is $850 per unit.

I separated sales into cash  15% of total sales and 85% for sales on account.

Find attached sales budget.

Download xlsx
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