Sales and Production Budgets Archer Company produces two products: the custom and the basic. The custom sells for $30, and the basic sells for $8. Projected sales of the two models for the coming four quarters are given below. Custom Basic 11,000 Fourth quarter First quarter 90,000 Second quarter 14,200 88,200 Third quarter 16,500 93,000 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 compile production budgets. He found that 800 customs and 1,140 basics were in inventory on January 1. Company policy dictates that ending inventory should equal 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 Custom: Units Year Unit price Igo 88 Sales Basic: Units DO Woo Unit price Sales Total Sales 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 Quarter 3 Unit sales Total needed Units produced Production budget for basics: Archer Company Production Budget for Basics First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales Total needed Units produced