Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 13

Forecast sales volume and sales budget
For 2016, Raphael Frame Company prepared the sales budget that follows.
At the end of December 2016, the following unit sales data were reported for the year:


For the year ending December 31, 2017, unit sales are expected to follow the patlerrs established during die year ending December 31, 2016. The unit selling price for the 8" × 10" frame is expected to increase to $17 and the unit selling price for the 12 × 16 frame is expected to increase to $32 , effective January 1, 2017.
Instructions
1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget. Place your answers in a columnar table with the following format:

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit.

3. Prepare a sales budget for the year ending December 31, 2017.