Templeton Corporation produces windows used in residential construction. Unit sales last year, ending December 31, follow. First quarter: 40,000 Second quarter: 50,000 Third quarter: 52,000 Fourth quarter: 48,000 Unit sales are expected to increase 10 percent this coming year over the same quarter last year. Average sales price per window will remain at \($200.

Assume\) finished goods inventory is maintained at a level equal to 5 percent of the next quarter’s sales. Finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,300 units.

Required

a. Prepare a sales budget for Templeton Corporation using a format similar to Exhibit 9.1. Be sure to increase last year’s unit sales by 10 percent.

b. Prepare a production budget for Templeton Corporation using a format similar to Exhibit’ 9:2.

Exhibit 9.1

Exhibit 9.2

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Sales Budget for Jerry's Ice Cream Jerry's Ice Cream Sales Budget Year Ending December 31 Quarter 2 3 4 60,000 X $6 $360,000 52,000 X $6 $312,000 Year 200,000 X $6 $1,200,000 Sales in units (1 unit = 1 gallon) Sales price per unit Sales revenue 1 40,000 X $6 $240,000 48,000 X $6 $288,000