3SE
Question
Preparing an operating budget—sales budget Brown Company manufactures luggage sets. Brown sells its luggage sets to department stores. Brown expects to sell 1,700 luggage sets for \(180 each in January and 2,050 luggage sets for \)180 each in February. All sales are cash only. Prepare the sales budget for January and February.
Step-by-Step Solution
Verified Answer
Budgeted sales for January and February is $306,000 and $369,000 respectively.
1Step 1: Meaning of sales budget
A budget that is prepared for getting an estimation of sales in the future.
2Step 2: Preparation of sales budget for January and February
Particulars | January | February |
Budgeted luggage bags to be sold | 1,700 | 2,050 |
Sales price per unit | $180 | $180 |
Total | $306,000 | $369,000 |
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