Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below.

	Deluxe	Standard
First quarter	12,000	90,000
Second quarter	14,300	88,400
Third quarter	16,600	92,000
Fourth quarter	20,000	91,600

The president of the company believes that the projected sales are realistic and can be achieved by the company. In the factory, the production supervisor has received the projected sales figures and gathered information needed to compile production budgets. He found that 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarters sales for deluxes and 10 percent of next quarters sales for standards.

Required:

1. Prepare a sales budget for each quarter and for the year in total. Show sales by product and in total for each time period.

Berring Company
Sales Budget
For the Year Ended December 31
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Deluxe:
Units	____	____	_____	____	_____
Unit price	____	____	_____	____	____
Sales	____	____	____	____	____
Standard:
Units	____	____	____	____	____
Unit price	____	____	____	____	____
Sales	____	____	____	____	____
Total Sales	____	____	____	____	____

2. Prepare a separate production budget for each product for each of the first three quarters of the year.

Production budget for deluxes:

Berring Company
Production Budget for Deluxes
First Three Quarters of the Year
	Quarter 1	Quarter 2	Quarter 3
Unit sales	____	_____	____
	____	____	_____
Total needed	____	____	_____
	____	____	_____
Units produced	_____	_____	_____

Production budget for standards:

Berring Company
Production Budget for Standards
First Three Quarters of the Year
	Quarter 1	Quarter 2	Quarter 3
Unit sales	____	____	____
	____	____	____
Total needed	____	____	____
	____	____	____
Units produced	____	____	____