Paige Company estimates that unit sales will be 10,300 in quarter 1, 12,600 in quarter 2, 14,600 in quarter 3, and 18,800 in quarter 4. Using a sales price of $84 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020.

Paige Company

Sales budget for the quarters in the year ending December 31, 2020

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Selling price ($) 84 84 84 84

Sales in units 10,300 12,600 14,600 18,800

Sales in amount ($) 865,200 1,058,400 1,226,400 1,579,200

Explanation:

The sales budget is a plan put together by the company's management containing details of the company's sales for the coming period. This includes the quantity to be sold, the cost per unit etc.

The total sales is the product of the units to be sold and the selling price per unit.

Quarter 1:

Sales = $865,200

Q2:

Sales = $1,058,400

Q3:

Sales = $1,226,400

Q4:

Sales = $1,579,200

Explanation:

Giving the following information:

Paige Company estimates that unit sales will be 10,300 in quarter 1, 12,600 in quarter 2, 14,600 in quarter 3, and 18,800 in quarter 4.

Selling price = $84 per unit.

A sales budget consists of the budgeted sales in units multiplied by the selling price per unit.

Quarter 1:

Sales = 10,300*84 = $865,200

Q2:

Sales = 12,600*84 = $1,058,400

Q3:

Sales = 14,600*84 = $1,226,400

Q4:

Sales = 18,800*84 = $1,579,200