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Production Budget

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:

	S12L7		S12L5
First quarter, 20Y1	840		1,365
Second quarter, 20Y1	2,310		1,470
Third quarter, 20Y1	5,880		5,565
Fourth quarter, 20Y1	4,830		4,095
First quarter, 20Y2	945		1,260

The vice president of sales believes that the projected sales are realistic and can be achieved by the company.

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 20Y1 was 340 boxes. The company's policy is to have 20% 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% of the next quarter's sales of S12L5 in ending inventory.

Required:

Question Content Area

Prepare a production budget for each quarter for 20Y1 and for the year in total.

Stillwater Designs Production Budget for S12L7 For the Year Ended December 31, 20Y1

	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Year
Sales	fill in the blank ca68ecff0fcb002_1	fill in the blank ca68ecff0fcb002_2	fill in the blank ca68ecff0fcb002_3	fill in the blank ca68ecff0fcb002_4	fill in the blank ca68ecff0fcb002_5
Desired ending inventory	fill in the blank ca68ecff0fcb002_6	fill in the blank ca68ecff0fcb002_7	fill in the blank ca68ecff0fcb002_8	fill in the blank ca68ecff0fcb002_9	fill in the blank ca68ecff0fcb002_10
Total needs	fill in the blank ca68ecff0fcb002_11	fill in the blank ca68ecff0fcb002_12	fill in the blank ca68ecff0fcb002_13	fill in the blank ca68ecff0fcb002_14	fill in the blank ca68ecff0fcb002_15
Less: Beginning inventory	fill in the blank ca68ecff0fcb002_16	fill in the blank ca68ecff0fcb002_17	fill in the blank ca68ecff0fcb002_18	fill in the blank ca68ecff0fcb002_19	fill in the blank ca68ecff0fcb002_20
Units produced	fill in the blank ca68ecff0fcb002_21	fill in the blank ca68ecff0fcb002_22	fill in the blank ca68ecff0fcb002_23	fill in the blank ca68ecff0fcb002_24	fill in the blank ca68ecff0fcb002_25

Question Content Area

Prepare a production budget for each quarter for 20Y1 and for the year in total. If required, round your answers to nearest whole value.

Stillwater Designs Production Budget for S12L5 For the Year Ended December 31, 20Y1

	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Year
Sales	fill in the blank a4ad73fdb00f079_1	fill in the blank a4ad73fdb00f079_2	fill in the blank a4ad73fdb00f079_3	fill in the blank a4ad73fdb00f079_4	fill in the blank a4ad73fdb00f079_5
Desired ending inventory	fill in the blank a4ad73fdb00f079_6	fill in the blank a4ad73fdb00f079_7	fill in the blank a4ad73fdb00f079_8	fill in the blank a4ad73fdb00f079_9	fill in the blank a4ad73fdb00f079_10
Total needs	fill in the blank a4ad73fdb00f079_11	fill in the blank a4ad73fdb00f079_12	fill in the blank a4ad73fdb00f079_13	fill in the blank a4ad73fdb00f079_14	fill in the blank a4ad73fdb00f079_15
Less: Beginning inventory	fill in the blank a4ad73fdb00f079_16	fill in the blank a4ad73fdb00f079_17	fill in the blank a4ad73fdb00f079_18	fill in the blank a4ad73fdb00f079_19	fill in the blank a4ad73fdb00f079_20
Units produced	fill in the blank a4ad73fdb00f079_21	fill in the blank a4ad73fdb00f079_22	fill in the blank a4ad73fdb00f079_23	fill in the blank a4ad73fdb00f079_24	fill in the blank a4ad73fdb00f079_25