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	1,040		1,690
Second quarter, 20Y1	2,860		1,820
Third quarter, 20Y1	7,280		6,890
Fourth quarter, 20Y1	5,980		5,070
First quarter, 20Y2	1,170		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:

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 faf79bf6d07cff9_1	fill in the blank faf79bf6d07cff9_2	fill in the blank faf79bf6d07cff9_3	fill in the blank faf79bf6d07cff9_4	fill in the blank faf79bf6d07cff9_5
Desired ending inventory	fill in the blank faf79bf6d07cff9_6	fill in the blank faf79bf6d07cff9_7	fill in the blank faf79bf6d07cff9_8	fill in the blank faf79bf6d07cff9_9	fill in the blank faf79bf6d07cff9_10
Total needs	fill in the blank faf79bf6d07cff9_11	fill in the blank faf79bf6d07cff9_12	fill in the blank faf79bf6d07cff9_13	fill in the blank faf79bf6d07cff9_14	fill in the blank faf79bf6d07cff9_15
Less: Beginning inventory	fill in the blank faf79bf6d07cff9_16	fill in the blank faf79bf6d07cff9_17	fill in the blank faf79bf6d07cff9_18	fill in the blank faf79bf6d07cff9_19	fill in the blank faf79bf6d07cff9_20
Units produced	fill in the blank faf79bf6d07cff9_21	fill in the blank faf79bf6d07cff9_22	fill in the blank faf79bf6d07cff9_23	fill in the blank faf79bf6d07cff9_24	fill in the blank faf79bf6d07cff9_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 adaf48fd5f9ef88_1	fill in the blank adaf48fd5f9ef88_2	fill in the blank adaf48fd5f9ef88_3	fill in the blank adaf48fd5f9ef88_4	fill in the blank adaf48fd5f9ef88_5
Desired ending inventory	fill in the blank adaf48fd5f9ef88_6	fill in the blank adaf48fd5f9ef88_7	fill in the blank adaf48fd5f9ef88_8	fill in the blank adaf48fd5f9ef88_9	fill in the blank adaf48fd5f9ef88_10
Total needs	fill in the blank adaf48fd5f9ef88_11	fill in the blank adaf48fd5f9ef88_12	fill in the blank adaf48fd5f9ef88_13	fill in the blank adaf48fd5f9ef88_14	fill in the blank adaf48fd5f9ef88_15
Less: Beginning inventory	fill in the blank adaf48fd5f9ef88_16	fill in the blank adaf48fd5f9ef88_17	fill in the blank adaf48fd5f9ef88_18	fill in the blank adaf48fd5f9ef88_19	fill in the blank adaf48fd5f9ef88_20
Units produced	fill in the blank adaf48fd5f9ef88_21