Brief Exercise 22-02 Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,100 in quarter 2, 14,800 in quarter 3, and 18,800 in quarter 4. Using a sales price of $82 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020.

Paige Company

Sales budget by quarters for the year ending December 31, 2020:

                          Quarter 1  Quarter 2  Quarter 3  Quarter 4         Total

Sales in units        10,100        12,100        14,800       18,800         55,800

Unit sales price     $82             $82           $82             $82           $82

Sales value      $828,200  $992,200  $1,213,600 $1,541,600 $4,575,600

Explanation:

a) Data and Calculations:

                           Quarter 1  Quarter 2  Quarter 3  Quarter 4         Total

Sales in units        10,100        12,100        14,800       18,800         55,800

Unit sales price     $82             $82           $82             $82           $82

Sales value      $828,200  $992,200  $1,213,600 $1,541,600 $4,575,600

b) Paige's sales budget is a financial plan which computes the expected sales revenue based on an expected selling price and sales unit.  Paige uses the sales budget to forecast its future sales revenue. The preparation of the sales budget by Paige Company will ensure the efficient allocation of business resources, thereby saving time, effort, and money.

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