Prepare a separate production budget for each product for each of the first three quarters of the year.

Production budget for customs:

Archer Company

Production Budget for Customs

First Three Quarters of the Year

Quarter $1$ Quarter $2$ Quarter $3$

Unit sales Production budget for basics:Sales and Production Budgets

Archer Company produces two products: the custom and the basic. The custom sells for $$30,$ and the basic sells for $$8.$ Projected sales of the two models for the coming

four quarters are given below.

The president of the company believes that the projected sales are realistic and can be achieved by the company. In the factory, the production supervisor has received

the projected sales figures and gathered information needed to compile production budgets. He found that $800$ customs and $1,140$ basics were in inventory on January $1.$

Company policy dictates that ending inventory should equal $20$ percent of the next quarter's sales for customs and $10$ percent of next quarter's sales for basics.

Required:

Prepare a sales budget for each quarter and for the year in total. Show sales by product and in total for each time period.

Archer Company

Sales Budget

For the Year Ended December $31$

Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$ Year

Custom:

Units

Unit price $

$

$

$$

Sales

$

$

$

$

$