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	880		1,430
Second quarter, 20Y1	2,420		1,540
Third quarter, 20Y1	6,160		5,830
Fourth quarter, 20Y1	5,060		4,290
First quarter, 20Y2	990		1,320

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 01df7efbcf89f8c_1	fill in the blank 01df7efbcf89f8c_2	fill in the blank 01df7efbcf89f8c_3	fill in the blank 01df7efbcf89f8c_4	fill in the blank 01df7efbcf89f8c_5
Desired ending inventory	fill in the blank 01df7efbcf89f8c_6	fill in the blank 01df7efbcf89f8c_7	fill in the blank 01df7efbcf89f8c_8	fill in the blank 01df7efbcf89f8c_9	fill in the blank 01df7efbcf89f8c_10
Total needs	fill in the blank 01df7efbcf89f8c_11	fill in the blank 01df7efbcf89f8c_12	fill in the blank 01df7efbcf89f8c_13	fill in the blank 01df7efbcf89f8c_14	fill in the blank 01df7efbcf89f8c_15
Less: Beginning inventory	fill in the blank 01df7efbcf89f8c_16	fill in the blank 01df7efbcf89f8c_17	fill in the blank 01df7efbcf89f8c_18	fill in the blank 01df7efbcf89f8c_19	fill in the blank 01df7efbcf89f8c_20
Units produced	fill in the blank 01df7efbcf89f8c_21	fill in the blank 01df7efbcf89f8c_22	fill in the blank 01df7efbcf89f8c_23	fill in the blank 01df7efbcf89f8c_24	fill in the blank 01df7efbcf89f8c_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 a27fcf09e02c02b_1	fill in the blank a27fcf09e02c02b_2	fill in the blank a27fcf09e02c02b_3	fill in the blank a27fcf09e02c02b_4	fill in the blank a27fcf09e02c02b_5
Desired ending inventory	fill in the blank a27fcf09e02c02b_6	fill in the blank a27fcf09e02c02b_7	fill in the blank a27fcf09e02c02b_8	fill in the blank a27fcf09e02c02b_9	fill in the blank a27fcf09e02c02b_10
Total needs	fill in the blank a27fcf09e02c02b_11	fill in the blank a27fcf09e02c02b_12	fill in the blank a27fcf09e02c02b_13	fill in the blank a27fcf09e02c02b_14	fill in the blank a27fcf09e02c02b_15
Less: Beginning inventory	fill in the blank a27fcf09e02c02b_16	fill in the blank a27fcf09e02c02b_17	fill in the blank a27fcf09e02c02b_18	fill in the blank a27fcf09e02c02b_19	fill in the blank a27fcf09e02c02b_20
Units produced	fill in the blank a27fcf09e02c02b_21	fill in the blank a27fcf09e02c02b_22	fill in the blank a27fcf09e02c02b_23	fill in the blank a27fcf09e02c02b_24	fill in the blank a27fcf09e02c02b_25