Sales and Production Budgets Archer Company produces two products: the custom and the base The custom sets for $30, and the basic sets for $8. Projected sales of the models for the coming for waters are even below. Custom Basic First quarter 11,000 90,000 Second quarter 14,200 88,200 Third quarter 16,500 93,000 Fourth quarter 20,000 91.400 The president of the company believes that the projected sales are realistic and can be achieved by the company in the factory, the production supervisor has received the projected sales figures and gathered information needed to come production budgets. He found that customs and 1,140 basics were sectory on Janoary 1. Company policy dictates that ending wventory should coal 20 percent of the next quarter's sales for customs and 10 percent of next quarter's sales for basics Required: 1. Prepare a sales budget for each quarter and for the year in total, Show sales by product and in total for each time period, Archer Company Sales Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Custom: Units 11.000 14.500 X 16.800 x 20,000 Unit price 30 30 30 30 Sales 330,000 435.000 X 504,000 X 600,000 OED Basic Units 90,000 88.200 92,000 X & N Unit price 8 8 72,000 X Sales 705.600 736,000 x 734,400 X 1,050,000 Total Sales 1,140,600 x 1,340,000 X 1,334,400x 2. Prepare a separate production budget for each product for each of the first three quarters of the year. Production budget for customs: Archer Company Production Budget for Customs First Three Quarters of the Year Quarter 1 Quarter 2 Unit sales 11,000 14,500X Quarter 3 16,800 X Desired ending inventory 2,900 X 3,360 X 4,000 Total needed 13.900 X 17,860 x 20,800 x 800 2,900 X 3,361 Less: Beginning inventory X 13,100 X 14,960 X Units produced 17,440 x fedhart wa que vivencry around and unit ses Production budget for basics: Quarter 3 92,000 X Archer Company Production Budget for Basics First Three Quarters of the Year Quarter 1 Quarter 2 Unit sales 90.000 88,200 Desired ending inventory X820 9.200 X Total needed 98.820 97,400 X Less: Beginning inventory 1.140 UK20 Units produced 97.680 $8.580 X 9,1 RDX 101,180 X 9,200 x 91.980 X Feedback Check My Work Units to be produced = Unit sales + Desired units in ending inventory - Units in beginning inventory