Question

Brief Exercise 10-2 Your answer is partially correct. Try again. For the quarter ended March 31, 2020, Croix Company accumulates the following sales data for its newest guitar, The Edge: $313,200 budget; $304,000 actual. In the second quarter, budgeted sales were $383,200, and actual sales were $399,500. Prepare a static budget report for the second quarter and for the year to date.

Answer 1

Answer and Explanation:

The preparation of static budget is shown below:-

Static budget for the second quarter

Croix Company

Sales budget report

for the quarter ending March 31, 2020

Product line Budget Actual Difference

Newest guitar $383,200 $399,500 $16,300 Favorable

Static budget for the year to date

Croix Company

Sales budget report

for the quarter ending March 31, 2020

Product line Budget Actual Difference

Newest guitar $696,400 $703,500 $7,100 Unfavorable

Working note

Total budget sales = Sales of first quarter + Sales of second quarter

= $313,200 + $383,200

= $696,400

Total actual sales = Sales of first quarter + Sales of second quarter

= $304,000 + $399,500

= $703,500