Marigold Furniture builds high-end hand-made dining tables. Attacus Simmons, the company's owner, has developed the following sales forecast for 2022. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Forecasted sales (tables) 2,700 3,300 2.900 1,800 Because of the time needed to create each table, Marigold maintains an ending Finished Goods Inventory of 20% of the following quarter's budgeted sales. Marigold has been following this inventory policy for several years. The company ended 2021 with 450 tables on hand. The standard cost card for a table is as follows: Standard Quantity Standard Price Total Standard Cost American cherry wood 20 board feet $4/board foot $80 American cherry turning square (legs) 4 squares $8/square 32 Direct labor 8 DLH $15/DLH 120 Variable overhead 8 DLH $45/DLH 360 Fixed overhead 8 DLH $12/DLH 96 Fixed overhead 8 DLH $12/DLH 96 $688 (a) Your answer is correct. Prepare Marigold's production budget for 2022. Assume that the desired ending inventory for 2022 is 500 tables. Production Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted unit sales 2700 3300 2900 Budgeted ending inventory 660 580 360 Total units required 3360 3880 3260 Beginning inventory 450 i 660 i 580 Your answer is correct. Prepare Marigold's production budget for 2022. Assume that the desired ending inventory for 2022 is 500 tables. Production Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 3300 2900 1800 10700 580 360 500 500 3880 3260 2300 11200 660 i 580 i 360 450 i 3220 2680 1940 10750 e Textbook and Media Attempts: 1 of 3 used (b) Your answer is partially correct. Marigold maintains inventory of American cherry wood equal to 10% of the following quarter's production needs. On December 31, 2021, Marigold's physical inventory count showed 4,500 board feet of American cherry. Due to an anticipated price increase in 2023, managers want to have 5,000 board feet of American cherry wood in inventory on December 31, 2022. Prepare Marigold's 2022 direct materials purchases budget for American cherry wood. Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted production 2910 3220 2680 Standard board feet 20 20 20 Production needs 58200 64400 53600 Budgeted ending inventory Total DM required Beginning inventory Direct Materials Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted production 2910 3220 2680 Standard board feet 20 20 20 Production needs 58200 64400 53600 Budgeted ending inventory Total DM required Beginning inventory Budgeted purchases Standard price per board foot $ Budgeted purchases cost $ $ $ Direct Materials Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 3220 2680 1940 10750 OUD 20 20 20 20 64400 53600 38800 215000 ] ] si $ $ $ $ $ $
