Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows:

S12L7 S12L5
First quarter, 20Y1 800 1,300
Second quarter, 20Y1 2,200 1,400
Third quarter, 20Y1 5,600 5,300
Fourth quarter, 20Y1 4,600 3,900

First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company.

Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer.

Check the explanation

Explanation:

Please find the detailed answer as follows:

Stillwater Designs

Sales Budget for the Year Ended 31 Dec 2014

1st Quarter  2nd Quarter  Third Quarter  Fourth Quarter  Total

S12L7      

Units         800  2200  5600  4600  13200

Price          475  475      475     475     475

Sales    380000  1045000  2660000  2185000  6270000

1st Quarter  2nd Quarter  Third Quarter  Fourth Quarter  Total

S12L5      

Units  1300  1400  5300  3900  11900

Price  300  300  300  300  300

Sales  390000  420000  1590000  1170000  3570000

Total Sales  770000  1465000  4250000  3355000  9840000

Kindly check the attached image below for a well arranged accounting entry.

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