Crane Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Mary Smith, the companys sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices.

		Sales Price			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
Acoustic guitar sales		$1,200			200			270			300			330
Electric guitar sales		$2,000			400			350			320			360

Each acoustic guitar requires a maple neck blank, which Crane purchases for $30. On December 31, 2021, Crane had 200neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Crane wants to maintain an ending inventory equal to 50% of the following quarters production needs. Since the supplier has assured Crane that the delivery issues will be resolved by the end of December, Crane wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022.

Purchases Budget
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
select an opening purchases budget item Budgeted purchases (necks)Total DM required (necks)Budgeted purchases costBudgeted productionBeginning inventoryStandard price per neckProduction needsBudgeted ending inventoryStandard necks per guitar		enter a number of units		enter a number of units		enter a number of units		enter a number of units		enter a number of units
select a purchases budget item Total DM required (necks)Standard necks per guitarBeginning inventoryBudgeted purchases (necks)Production needsStandard price per neckBudgeted ending inventoryBudgeted purchases costBudgeted production		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks
select a summarizing line for the first part Standard price per neckBudgeted productionStandard necks per guitarBudgeted ending inventoryBeginning inventoryProduction needsBudgeted purchases costTotal DM required (necks)Budgeted purchases (necks)		enter a total number of neck blanks for the first part		enter a total number of neck blanks for the first part		enter a total number of neck blanks for the first part		enter a total number of neck blanks for the first part		enter a total number of neck blanks for the first part
select a purchases budget item Beginning inventoryBudgeted ending inventoryBudgeted productionStandard necks per guitarStandard price per neckProduction needsTotal DM required (necks)Budgeted purchases costBudgeted purchases (necks)		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks
select a summarizing line for the second part Standard necks per guitarProduction needsStandard price per neckBudgeted ending inventoryTotal DM required (necks)Budgeted purchases (necks)Budgeted productionBudgeted purchases costBeginning inventory		enter a total number of neck blanks for the second part		enter a total number of neck blanks for the second part		enter a total number of neck blanks for the second part		enter a total number of neck blanks for the second part		enter a total number of neck blanks for the second part
select a purchases budget item Production needsTotal DM required (necks)Beginning inventoryBudgeted ending inventoryBudgeted purchases (necks)Standard necks per guitarBudgeted purchases costBudgeted productionStandard price per neck		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks		enter a number of neck blanks
select a summarizing line for the third part Total DM required (necks)Standard price per neckBudgeted purchases costStandard necks per guitarProduction needsBudgeted productionBeginning inventoryBudgeted purchases (necks)Budgeted ending inventory		enter a total number of neck blanks for the third part		enter a total number of neck blanks for the third part		enter a total number of neck blanks for the third part		enter a total number of neck blanks for the third part		enter a total number of neck blanks for the third part
select a purchases budget item Budgeted ending inventoryProduction needsTotal DM required (necks)Budgeted productionBudgeted purchases costBeginning inventoryStandard necks per guitarStandard price per neckBudgeted purchases (necks)		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing purchases budget item Standard price per neckBudgeted purchases (necks)Beginning inventoryBudgeted ending inventoryBudgeted purchases costBudgeted productionProduction needsTotal DM required (necks)Standard necks per guitar		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount