I tried this method many times.. Can you show how to find production budget? and Purchases budget?
Problem 5-31
Marigold Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the companys sales manager, prepared the following sales forecast for 2018. 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 | | $1,300 | | | 200 | | | 250 | | | 300 | | | 305 | | |
| Electric guitar sales | | $2,350 | | | 400 | | | 360 | | | 300 | | | 350 |
Your answer is correct Prepare Marigold's sales budget for 2018 Sales Budget 2nd Quarter 4th Quarter 3rd Quarter 1st Quarter Annual Acoustic: 250 Budgeted units sold 200 300 305 1055 1300 1300 1300 1300 1300 Budgeted sales price 260000 390000 396500 325000 1371500 Budgeted revenue Electric: Budgeted units sold 400 360 300 350 1410 2350 2350 2350 2350 2350 Budgeted sales price 940000 822500 846000 705000 3313500 Budgeted revenue 1200000 1219000 1171000 1095000 4685000 Total revenue $ A Your answer is partially correct. Try again On December 31, 2017, Marigold had 30 acoustic guitars in stock-fewer than the desired inventory level of 80 guitars, based on the following quarter's sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2019. Prepare the 2018 production budget for acoustic guitars. Production Budget 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter Annual Budgeted unit sales 200 250 300 305 1055 X 112 130 Budgeted ending inventory Total units required 312 430 X X 30 120 Beginning inventory X X 282 310 Budgeted production LINK TO TEXT LINK TO VIDEO Purchases Budget 1st Quarter 3rd Quarter Standard necks per guitar 1.5 Production needs Production needs Budgeted ending inventory Total DM required (necks) Beginning inventory Budgeted purchases (necks) Standard price per neck Budgeted purchases cost LO LO A LA Your answer is correct Prepare Marigold's sales budget for 2018 Sales Budget 2nd Quarter 4th Quarter 3rd Quarter 1st Quarter Annual Acoustic: 250 Budgeted units sold 200 300 305 1055 1300 1300 1300 1300 1300 Budgeted sales price 260000 390000 396500 325000 1371500 Budgeted revenue Electric: Budgeted units sold 400 360 300 350 1410 2350 2350 2350 2350 2350 Budgeted sales price 940000 822500 846000 705000 3313500 Budgeted revenue 1200000 1219000 1171000 1095000 4685000 Total revenue $ A Your answer is partially correct. Try again On December 31, 2017, Marigold had 30 acoustic guitars in stock-fewer than the desired inventory level of 80 guitars, based on the following quarter's sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2019. Prepare the 2018 production budget for acoustic guitars. Production Budget 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter Annual Budgeted unit sales 200 250 300 305 1055 X 112 130 Budgeted ending inventory Total units required 312 430 X X 30 120 Beginning inventory X X 282 310 Budgeted production LINK TO TEXT LINK TO VIDEO Purchases Budget 1st Quarter 3rd Quarter Standard necks per guitar 1.5 Production needs Production needs Budgeted ending inventory Total DM required (necks) Beginning inventory Budgeted purchases (necks) Standard price per neck Budgeted purchases cost LO LO A LA
