Final Accounting
Peyton Approved Accounting Final
Final Part 1
SALES BUDGET
The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit-selling price. As reflected in Exhibit A noted below and included in the overall Peyton Approved budget worksheet included in Appendix A, Peyton Approved expects sales volume to be 18000, 22000 and 20000 units in the month of July, August and September respectively. The budgeted sales in August exceeded July's sales units by 4000 units, however, sales declined in September by 2000 units from August. Peyten Approved budgeted sales price per units for the quarter was based on a sales price of $18 per unit. Thus, budgeted total dollars per month are 324,000 computed 18 sales price per unit, 396000 sales price per unit, and 360000 sales price per unit in July, August, and September respectively.
Exhibit A – Sales Budget PRODUCTION BUDGET
Production budget shows the units to produce to meet anticipated sales. The formula to compute required production unit is as below:
Budgeted sales units + Budgeted Ending - Beginning inventory = Required production units.
As reflected in the Production Budget captured in Exhibit B below and included in the overall Peyton Approved budget worksheet included in Appendix A. First budgeted sales units for each month in the quarter was used to multiply with ratio to inventory future sales to compute budgeted ending inventory. The company stated that it was company's policy to have a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. Then, budgeted sales units of 18,000, 22,000 and 20,000 units are added to the budgeted ending inventory units of 15,400, 14,000 and 16,800 units for the month of July, August and September, respectively to arrive to required units to be produced of 33,400, 36,000 and 36,800 units for each respective months. Subsequently, beginning inventory is deducted from required
Final Part 1
SALES BUDGET
The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit-selling price. As reflected in Exhibit A noted below and included in the overall Peyton Approved budget worksheet included in Appendix A, Peyton Approved expects sales volume to be 18000, 22000 and 20000 units in the month of July, August and September respectively. The budgeted sales in August exceeded July's sales units by 4000 units, however, sales declined in September by 2000 units from August. Peyten Approved budgeted sales price per units for the quarter was based on a sales price of $18 per unit. Thus, budgeted total dollars per month are 324,000 computed 18 sales price per unit, 396000 sales price per unit, and 360000 sales price per unit in July, August, and September respectively.
Exhibit A – Sales Budget PRODUCTION BUDGET
Production budget shows the units to produce to meet anticipated sales. The formula to compute required production unit is as below:
Budgeted sales units + Budgeted Ending - Beginning inventory = Required production units.
As reflected in the Production Budget captured in Exhibit B below and included in the overall Peyton Approved budget worksheet included in Appendix A. First budgeted sales units for each month in the quarter was used to multiply with ratio to inventory future sales to compute budgeted ending inventory. The company stated that it was company's policy to have a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. Then, budgeted sales units of 18,000, 22,000 and 20,000 units are added to the budgeted ending inventory units of 15,400, 14,000 and 16,800 units for the month of July, August and September, respectively to arrive to required units to be produced of 33,400, 36,000 and 36,800 units for each respective months. Subsequently, beginning inventory is deducted from required