Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Do not include a multiplication symbol as part of your answer.

Question

Business

Norton

12 May, 01:26

Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first three months of the coming year: January 41,000 February 38,000 March 50,000 The average price for a drum is $35. Required: Prepare a sales budget for the first 3 months of the coming year, showing units and sales revenue by month and in total for the quarter. Do not include a multiplication symbol as part of your answer.

+3

Answers (1)

Know the Answer?

Yurem Lucas · Answer 1

The sales budget is prepared below. See table below.

Explanation:

A sales budget shows the expected revenue and units to be sold for a forth coming accounting period. The sales budget for Patrick Inc would look as follows:

Sales budget

Month Units Revenue ($)

January 41,000 1,435,000

February 38,000 1,330,000

March 50,000 1,750,000

4,515,000

Note the revenue per month is determined by multiplying the unit to be sold by the price per unit of $35