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:

	S12L7		S12L5
First quarter, 20Y1	1,120		1,820
Second quarter, 20Y1	3,080		1,960
Third quarter, 20Y1	7,840		7,420
Fourth quarter, 20Y1	6,440		5,460
First quarter, 20Y2	1,260		1,680

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:

Question Content Area

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

	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Year
Sales	fill in the blank 7e6d03ff6facfe7_1	fill in the blank 7e6d03ff6facfe7_2	fill in the blank 7e6d03ff6facfe7_3	fill in the blank 7e6d03ff6facfe7_4	fill in the blank 7e6d03ff6facfe7_5
Desired ending inventory	fill in the blank 7e6d03ff6facfe7_6	fill in the blank 7e6d03ff6facfe7_7	fill in the blank 7e6d03ff6facfe7_8	fill in the blank 7e6d03ff6facfe7_9	fill in the blank 7e6d03ff6facfe7_10
Total needs	fill in the blank 7e6d03ff6facfe7_11	fill in the blank 7e6d03ff6facfe7_12	fill in the blank 7e6d03ff6facfe7_13	fill in the blank 7e6d03ff6facfe7_14	fill in the blank 7e6d03ff6facfe7_15
Less: Beginning inventory	fill in the blank 7e6d03ff6facfe7_16	fill in the blank 7e6d03ff6facfe7_17	fill in the blank 7e6d03ff6facfe7_18	fill in the blank 7e6d03ff6facfe7_19	fill in the blank 7e6d03ff6facfe7_20
Units produced	fill in the blank 7e6d03ff6facfe7_21	fill in the blank 7e6d03ff6facfe7_22	fill in the blank 7e6d03ff6facfe7_23	fill in the blank 7e6d03ff6facfe7_24	fill in the blank 7e6d03ff6facfe7_25

Question Content Area

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	fill in the blank 002761fd8054015_1	fill in the blank 002761fd8054015_2	fill in the blank 002761fd8054015_3	fill in the blank 002761fd8054015_4	fill in the blank 002761fd8054015_5
Desired ending inventory	fill in the blank 002761fd8054015_6	fill in the blank 002761fd8054015_7	fill in the blank 002761fd8054015_8	fill in the blank 002761fd8054015_9	fill in the blank 002761fd8054015_10
Total needs	fill in the blank 002761fd8054015_11	fill in the blank 002761fd8054015_12	fill in the blank 002761fd8054015_13	fill in the blank 002761fd8054015_14	fill in the blank 002761fd8054015_15
Less: Beginning inventory	fill in the blank 002761fd8054015_16	fill in the blank 002761fd8054015_17	fill in the blank 002761fd8054015_18	fill in the blank 002761fd8054015_19	fill in the blank 002761fd8054015_20
Units produced	fill in the blank 002761fd8054015_21	fill in the blank 002761fd8054015_22	fill in the blank 002761fd8054015_23	fill in the blank 002761fd8054015_24	fill in the blank 002761fd8054015_25