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: S1217 $1215 First quarter, 20Y1 1,040 1,690 Second quarter, 20Y1 2,860 1,820 Third quarter, 20Y1 7,280 6,890 Fourth quarter, 20Y1 First quarter, 20Y2 5,980 1,170 5,070 1,560 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: 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 27 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Stillwater Designs Production Budget for S1217 For the Year Ended December 31, 20Y1 1st Qtr. 2nd Qtr. 3rd Qtr. Sales 1,040 2,860 7,280 Desired ending inventory 572 1,456 1,196 4th Qtr. Year 5,980 17,160 234 234 Total needs 1,612 4,316 8,476 6,214 17,394 Less: Beginning inventory 340 340 Units produced 1,272 V 17,054 Feedback 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 1,690 1,820 V 6,890 5,070 15,470 Desired ending inventory 546 2,067 1,521 468 468 Total needs 2,236 3,887 V 8,411 V 5,538 V 15,938 Less: Beginning inventory 170 170 Units produced 2,066 15,768 Feedback