Question

Yada Company manufactures luggage sets. Yada sells its luggage sets to department stores. Yada expects to sell 1,950 luggage sets for $295 each in January and 2,300 luggage sets for $295 each in February. All sales are cash only. Prepare the sales budget for January and February

Answer 1

To prepare the sales budget for Yada Company, multiply the number of luggage sets expected to be sold by the selling price for each set. In January, sales are expected to be $575,250 and in February, $678,500.

Step-by-step explanation:

Sales Budget Preparation

To prepare the sales budget for January and February for Yada Company, we have to calculate the total sales revenue for each month. This can be done by multiplying the number of units expected to be sold by the selling price per unit.

January Sales Budget

Number of units expected to be sold in January: 1,950
Selling price per unit: $295
Total sales revenue for January = 1,950 units × $295/unit = $575,250

February Sales Budget

Number of units expected to be sold in February: 2,300
Selling price per unit: $295
Total sales revenue for February = 2,300 units × $295/unit = $678,500

All sales are made in cash, so these figures represent the cash inflows from sales for each month.