ABC Manufacturing Sells Widgets for $6 Required: Prepare a Sales Budget for Each Month and the Prepared

question 10

Essay

ABC Manufacturing sells widgets for $6.00 each.The marketing department has prepared the following second quarter sales forecast (in units)for 2009:
$\begin{array}{ll}\text { April } & 15000 \\\text { May } & 23000 \\\text { June } &\underline{ 20000} \\\text { Total } & \underline{58000}\end{array}$

Required: Prepare a sales budget for each month and the total for the quarter.Include all column and row headings.

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Definitions:

Net Price Method

An accounting method that records purchases at the net price, after deducting any discounts, rather than recording them at the gross price.

Catalog Price

The listed price of goods or services in a catalog, before any discounts or adjustments.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.