Question

Herron Company has budgeted the following unit sales:
2019 Units
April 25,000
May 50,000
June 75,000
July 45,000

Of the units budgeted, 40% are sold by the Southern Division at an average price of RM15 per
unit and the remainder are sold by the Eastern Division at an average price of RM12 per unit.
Instructions
Prepare separate sales budgets for each division and for the company in total for the second
quarter of 2019.

Answer 1

Sales Budget
	Southern Division			Eastern Division			Total company
Months	Number of units sold(a)	Selling price per unit (b)	Sales (c= a x b)	Number of units sold€	Selling price per unit(f)	Sales (g= e x f)	Sales (c+g)
April	10,000	$15	$150,000	15,000	$12	$180,000	$330,000
May	20,000	$15	$300,000	30,000	$12	$360,000	$660,000
June	30,000	$15	$450,000	45,000	$12	$540,000	$990,000
July	18,000	$15	$270,000	27,000	$12	$324,000	$594,000
Total			$1,170,000			$1,404,000	$2,574,000

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