Problem 5-31 Oriole Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric quitar price to cover anticinated increases in raw materials prices. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Sales Price Acoustic guitar sales $1,220 190 290 310 330 Electric quitar sales $2,380 410 380 330 380 Your answer is correct. Prepare Oriole's sales budget for 2018. Sales Budget 3rd Quarter 2nd Quarter 4th Quarter 1st Quarter Annual Acoustic: 1120 Budgeted units sold 190 290 310 330 1220 1220 1220 1220 1220 Budgeted sales price 1366400 231800 353800 378200 402600 Budgeted revenue Electric 1500 Budgeted units sold 410 380 330 380 2380 2380 2380 2380 2380 Budgeted sales price 975800 904400 3570000 785400 Budgeted revenue 904400 1163600 Total revenue 1207600 1258200 1307000 4936400 Your answer is correct. On December 31, 2017, Oriole had 30 acoustic quitars in stock-fewer than the desired inventory level of 76 quitars, 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 190 330 Budgeted unit sales 290 310 1120 96 Budgeted ending inventory 116 124 132 96 Total units required 306 442 414 426 1216 124 30 30 116 132 Beginning inventory 276 318 294 298 1186 Budgeted production LINK TO TEXT LINK T VIDEO Each acoustic production process results in a standard quantity of 1.5 necks per acoustic guitar. Because of recent delivery problems, Oriole wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Oriole that the delivery issues will be resolved by the end of December, Oriole wants only 310 neck blanks in inventory on December 31, 2018. Prepare the purchases budget for neck blanks for 2018. (Enter "per guitar" value to 1 decimal place, e.g. 3.1. Round all other answers to 0 decimal places, e.g. 153.) a maple neck blank, which Oriole purchases for $50. On December 31, 2017, Oriole had 400 neck blanks in inventory oila during the Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter Annual Budgeted production Standard necks per guitar .5 1.5 1.5 1.5 1.5 X Production needs x Budgeted ending inventory x Total DM required (necks) Beginning inventory Budgeted purchases (necks) Standard price per neck Budgeted purchases cost