Following is the sale record of a product in year 2020 & 2021:Year Spring Summer Fall Winter2020 1000 units 1500 units 1000 units 700 units2021 1100 units 1400 units 1100 units 600 unitsRequired: Determine De-seasonalized Sale Value (in units) for Spring, 2020?Important Instruction: Round your answer to the nearest integer.
Question
Following is the sale record of a product in year 2020 & 2021:Year Spring Summer Fall Winter2020 1000 units 1500 units 1000 units 700 units2021 1100 units 1400 units 1100 units 600 unitsRequired: Determine De-seasonalized Sale Value (in units) for Spring, 2020?Important Instruction: Round your answer to the nearest integer.
Solution 1
To calculate the de-seasonalized sale value, we first need to calculate the seasonal index for each season. The seasonal index is calculated by dividing the total sales for a specific season by the total sales for the year.
Here are the steps to calculate the de-seasonalized sale value for Spring, 2020:
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Calculate the total sales for each year:
For 2020: 1000 (Spring) + 1500 (Summer) + 1000 (Fall) + 700 (Winter) = 4200 units
For 2021: 1100 (Spring) + 1400 (Summer) + 1100 (Fall) + 600 (Winter) = 4200 units
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Calculate the total sales for Spring over the two years: 1000 (2020) + 1100 (2021) = 2100 units
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Calculate the seasonal index for Spring: 2100 (total Spring sales) / 8400 (total sales for both years) = 0.25
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Calculate the de-seasonalized sale value for Spring, 2020: 1000 (Spring 2020 sales) / 0.25 (Spring seasonal index) = 4000 units
So, the de-seasonalized sale value for Spring, 2020 is 4000 units.
Solution 2
To calculate the de-seasonalized sale value, we first need to calculate the seasonal index for each season. The seasonal index is calculated by dividing the total sales for a particular season by the total sales for the year.
Step 1: Calculate the total sales for each year.
For 2020: 1000 units (Spring) + 1500 units (Summer) + 1000 units (Fall) + 700 units (Winter) = 4200 units
For 2021: 1100 units (Spring) + 1400 units (Summer) + 1100 units (Fall) + 600 units (Winter) = 4200 units
Step 2: Calculate the seasonal index for Spring.
For 2020: 1000 units (Spring sales) / 4200 units (total sales) = 0.238
For 2021: 1100 units (Spring sales) / 4200 units (total sales) = 0.262
Step 3: Calculate the average seasonal index for Spring.
(0.238 + 0.262) / 2 = 0.25
Step 4: Calculate the de-seasonalized sale value for Spring, 2020.
1000 units (Spring sales) / 0.25 (average seasonal index) = 4000 units
So, the de-seasonalized sale value for Spring, 2020 is 4000 units.
Similar Questions
Following is the sale record of a product in year 2020 & 2021:Year Spring Summer Fall Winter2020 1000 units 1500 units 1000 units 700 units2021 1100 units 1400 units 1100 units 600 unitsRequired: Determine De-seasonalized Sale Value (in units) for Spring, 2020?Important Instruction: Round your answer to the nearest integer.
The following information was available for the year ended December 31, 2022:Net sales $ 300,000Cost of goods sold 210,000Average accounts receivable for the year 15,000Accounts receivable at year-end 18,000Average inventory for the year 60,000Inventory at year-end 70,000The inventory turnover for 2022 was:
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Following is the sale record of a product in year 2020:Spring = 1,040 unitsSummer = 1,427 unitsFall = 902 unitsWinter = 707 unitsRequired: Determine Seasonality Index for Winter?Important Instruction: Write your answer up to three decimal places.
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