PRINCIPLES OF ACCOUNTS

ACC- SECTION 11C BUDGETS KEYS

Question 1- Sales Budget Key

Sales Budget for Three Months Ending June 2015

April May June Year as a whole

Units 200 400 500 1100

Price $2 $2 $2 $2

Total Sales $400 $800 $1000 $2200

Question 2- Sales Budget Key

Sales Budget for Four Quarters 2016

Details Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year as a

whole

Units 3000 4000 7000 8000 22000

Price $3000 $3000 $3000 $3000 $3000

Sales $9,000,000 $12,000,000 $21,000,000 24,000,000 66 000,000

1|Page
Question 3 [CSEC January 2021]

Sales Budget for Three Months Ending December 2020

Details October November December

Units 4 000 10 000 12 000

Price X$8 X$9 X $9

Total Sales $32 000 $90 000 $108 000

Question 1- Production Budget Key

Production budget for January - March 2016

January February March

Expected sales (units) 300 400 500

Add desired ending inventory 40 [10%X400] 50 [10%X500] 60 [10%X600]

340 450 560

Less beginning inventory *120 40 50

Units to be produced 220 410 510

NB: Ending inventory at December 2015 becomes opening inventory for January 2016*120

Similarly ending inventory for January become opening inventory for February $40

2|Page
Question 2- Production Budget Key

Production Budget for April to June 30, 2017

April May June

Expected sales (units) 100 000 140 000 130 000

[10%X140000] [10% X130] [10%X150 000]
Add desired ending 14 000 13 000 15 000
inventory

114 000 153 000 145 000

Less beginning inventory 10 000 14 000 13 000

Units to be produced 104 000 139000 132 000

3|Page