Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

Exercise 39

SALES BUDGET
StrikeSmart Company manufactures and sells soccer balls for teams of children in elementary and high school. StrikeSmart's best-selling lines are the training ball line-durable soccer balls for training and practice; and the match ball line-high performance soccer balls used in games. In the first four months of next year, StrikeSmart expects to sell the following:

Required:
1. Construct a sales budget for StrikeSmart for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.
2. What if StrikeSmart added a third line-tournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of $40 each? Prepare a sales budget for StrikeSmart for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.