C&C SPORTS Sales Forecast for 2017 Baseball pants Baseball jerseys Award jackets Jan 38,000 12,000 0 Feb Mar Apr May June July Aug Sep Oct Nov Dec 20,000 12,000 12,000 12,000 16,000 8,000 6,000 6,000 10,000 20,000 40,000 9,000 5,000 4,000 6,000 3,000 2,000 2,000 2,000 4,000 6,000 15,000 0 0 1,000 5,000 3,000 0 0 0 1,000 5,000 3,000 Annual 200,000 70,000 18,000 C&C SPORTS 4th Quarter Sales Budget-Baseball Pants October November December Budgeted unit sales 10,000 20,000 40,000 (Exhibit 5-5) Budgeted sales price x $ 12.00 $ 12.00 $ 12.00 Budgeted sales revenue = $120,000 $240,000 $480,000 4th Quarter 70,000 $ 12.00 $840,000 4th Quarter Sales Budget-All Products Baseball pants Baseball jerseys Award jackets Total October $120,000 59,200 125,000 $304,200 November $240,000 88,800 625,000 $953,800 December $ 480,000 222,000 375,000 $1,077,000 4th Quarter $ 840,000 370,000 1,125,000 $2,335,000 Flows to budgeted income statement C&C SPORTS 4th Quarter Production Budget-Baseball Pants 4th Quarter 25% 25% Budgeted unit sales (Exhibit 5-5) Budgeted ending inventory Total units required Beginning inventory Budgeted production October 10,000 + 5,000 = 15,000 - 2,500 = 12,500 20,000 10,000 + 30,000 5,000 25,000 December -40,000 9,500 49,500 10,000 39,500 70,000 9,500 79,500 2,500 77,000 Flows to ending inventory budget October's budgeted beginning inventory is equal to 25% of October's budgeted unit sales. December's budgeted ending inventory is 25% of January 2015's budgeted sales of 38,000 pairs of pants (38,000 X 25% = 9,500). Using the information above prepare a detailed sales budget and production budget for baseball jerseys for the fourth quarter. Budgeted sales of baseball jerseys in January 2018 is 12,000 jerseys. Assume that the company expects sales for 2018 to be the same as 2017 sales. Assume that budgeted ending inventory level percentages for baseball jerseys are the same as baseball pants. Sales Budget November October December Quarter Production Budget November October December Quarter