Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 6 - Master Budget and Responsibility Accounting - Assignment Material - Exercises - Page 231: 6-20(1)

Answer

Budgeted Sales (915,000 units) $\times$ Selling Price (¥405,000 per unit) = 370,575,000,000 yen

Work Step by Step

To calculate the budgeted revenues in yen, we need to multiply the expected sales volume of Model G motorcycles (915,000 units) by the budgeted selling price per motorcycle (¥405,000 per unit). This will give us the total expected revenue in yen for the upcoming year. The budgeted revenues represent the income that Mochizuki Co. expects to generate from the sales of Model G motorcycles.
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