Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10. Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales

10. Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: First quarter, 20X2 Second quarter, 20X2 Third quarter, 20X2 S12L7 800 2,200 5,600 S12L5 4,600 1,300 1,400 5,300 Fourth quarter, 20X2 First quarter, 20X3 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: (a) Prepare a sales budget for each quarter of 20X2 and for the year in total. Show sales by product and in total for each time period. (b) How will Stillwater Designs use this sales budget? Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 20X2 was 340 boxes. The company's policy is to have 20 percent of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30 percent of the next quarter's sales of S12LS in ending inventory. (c) Prepare a production budget for each quarter for 20X2 and for the year in total. 3,900
image text in transcribed
Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for \$300. Projected sales (number of speakers) for the coming five quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: (a) Prepare a sales budget for each quarter of 202 and for the year in total. Show sales by product and in total for each time period. (b) How will Stillwater Designs use this sales budget? Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 20X2 was 340 boxes. The company's policy is to have 20 percent of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30 percent of the next quarter's sales of S12LS in ending inventory. (c) Prepare a production budget for each quarter for 20X2 and for the year in total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions