Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: Product UAE Pencil 1,00,000 30,000 70,000| 80,000 65,000 80,000 Eraser 40,000 45,00040,000 India Oman Pen Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 50,000 70,000 |60,000 75,000 90,000| Eraser 25,000 40,000 30,000 Pen The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR 1 respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: • If the price is increased by 10%, even then it finds a ready market. • Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE Pencil (+30%)(+40%)|(+20%) Pen India Oman |(-10%) |(+30%)(-10%) Raiser (+10%)(+20%)|(+10%) You are required to prepare the budget for the current year as

Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: Product UAE Pencil 1,00,000 30,000 70,000| 80,000 65,000 80,000 Eraser 40,000 45,00040,000 India Oman Pen Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 50,000 70,000 |60,000 75,000 90,000| Eraser 25,000 40,000 30,000 Pen The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR 1 respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: • If the price is increased by 10%, even then it finds a ready market. • Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE Pencil (+30%)(+40%)|(+20%) Pen India Oman |(-10%) |(+30%)(-10%) Raiser (+10%)(+20%)|(+10%) You are required to prepare the budget for the current year as

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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Hi, I would like to see the formula on the below solution of Budget for the current year be calculated through proportionate method. Product UAE India Oman Pencil 400,000 120,000 280,000 Pen 320,000 260,000 320,000 Eraser 160,000 180,000 160,000 Question is attached.
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Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 50,000 80,000 40,000 80,000 Budgeted unit sales • Each T-shirt is expected to sell for $25. 35 ⚫ The purchasing manager buys the T-shirts for $10 each. • The company needs to have enough T-shirts on hand at the end of each quarter to fill 35 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $100,000 per quarter plus 15 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter. Answer is not complete. Complete this…
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