The H&BClothing Company manufactures luxury brand silk jackets. Currently the company makes classic style jackets in a single size. The production process involves drawing, cutting, and assembling the pattern pieces. Direct materials include two types of fabric - silk, and viscose for lining. Other materials, such as shoulder pads, stitching threads, buttons, labels, and packaging, are treated as indirect materials. H&BClothing is preparing budgets for the third quarter ending September 30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July, August, and September, along with a total budget for the quarter. 1. The previous year's sales (2022) for the corresponding period were: 580 jackets July August September 600 jackets 650 jackets October November 850 jackets 1,000 jackets The company expects the above volume of jacket sales to increase by 15% for the period July 2023 - November 2023. The budgeted selling price for 2023 is $735.00 per jacket. The company expects 10% of its sales to be cash (COD) sales. The remaining 90% of sales will be made on credit. Prepare a Sales Budget for H&BClothing.
The H&BClothing Company manufactures luxury brand silk jackets. Currently the company makes classic style jackets in a single size. The production process involves drawing, cutting, and assembling the pattern pieces. Direct materials include two types of fabric - silk, and viscose for lining. Other materials, such as shoulder pads, stitching threads, buttons, labels, and packaging, are treated as indirect materials. H&BClothing is preparing budgets for the third quarter ending September 30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July, August, and September, along with a total budget for the quarter. 1. The previous year's sales (2022) for the corresponding period were: 580 jackets July August September 600 jackets 650 jackets October November 850 jackets 1,000 jackets The company expects the above volume of jacket sales to increase by 15% for the period July 2023 - November 2023. The budgeted selling price for 2023 is $735.00 per jacket. The company expects 10% of its sales to be cash (COD) sales. The remaining 90% of sales will be made on credit. Prepare a Sales Budget for H&BClothing.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter4: Profitability Analysis
Section: Chapter Questions
Problem 18PC
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Question
fill out the sales budget assumptions
and 2022 sales
screenshot attached
thanks
Transcribed Image Text:The H&BClothing Company manufactures luxury brand silk
jackets. Currently the company makes classic style jackets in
a single size. The production process involves drawing,
cutting, and assembling the pattern pieces. Direct materials
include two types of fabric - silk, and viscose for lining.
Other materials, such as shoulder pads, stitching threads,
buttons, labels, and packaging, are treated as indirect
materials. H&BClothing is preparing budgets for the third quarter ending September
30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July,
August, and September, along with a total budget for the quarter.
1. The previous year's sales (2022) for the corresponding period were:
July
580 jackets
600 jackets
August
September
October
650 jackets
November
850 jackets
1,000 jackets
The company expects the above volume of jacket sales to increase by 15% for the
period July 2023 - November 2023. The budgeted selling price for 2023 is $735.00
per jacket. The company expects 10% of its sales to be cash (COD) sales. The
remaining 90% of sales will be made on credit. Prepare a Sales Budget for
H&BClothing.
Transcribed Image Text:A
B
1 H&BClothing Company
2 2022 Budget Assumptions
3 Prepared by:
4
5 Sales Budget Assumptions
6
7
8
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10
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12
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16
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22
с
2022 Sales
July
August
Unit Price
Percentage of Cash Sale
Percentage of Credit Sale
Expected sales increase
September
October
November
D
E
F
G
H
T
J
K
L
M
N
O
P
Q
R
S
T
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