Question
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.
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 | |
First quarter | 12,000 | 90,000 |
Second quarter | 14,200 | 88,600 |
Third quarter | 16,500 | 92,000 |
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 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:
Question Content Area
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.
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
Custom: | |||||
Units | fill in the blank 5ad7e8ffffcef80_1 | fill in the blank 5ad7e8ffffcef80_2 | fill in the blank 5ad7e8ffffcef80_3 | fill in the blank 5ad7e8ffffcef80_4 | fill in the blank 5ad7e8ffffcef80_5 |
Unit price | $fill in the blank 5ad7e8ffffcef80_6 | $fill in the blank 5ad7e8ffffcef80_7 | $fill in the blank 5ad7e8ffffcef80_8 | $fill in the blank 5ad7e8ffffcef80_9 | $fill in the blank 5ad7e8ffffcef80_10 |
Sales | $fill in the blank 5ad7e8ffffcef80_11 | $fill in the blank 5ad7e8ffffcef80_12 | $fill in the blank 5ad7e8ffffcef80_13 | $fill in the blank 5ad7e8ffffcef80_14 | $fill in the blank 5ad7e8ffffcef80_15 |
Basic: | |||||
Units | fill in the blank 5ad7e8ffffcef80_16 | fill in the blank 5ad7e8ffffcef80_17 | fill in the blank 5ad7e8ffffcef80_18 | fill in the blank 5ad7e8ffffcef80_19 | fill in the blank 5ad7e8ffffcef80_20 |
Unit price | $fill in the blank 5ad7e8ffffcef80_21 | $fill in the blank 5ad7e8ffffcef80_22 | $fill in the blank 5ad7e8ffffcef80_23 | $fill in the blank 5ad7e8ffffcef80_24 | $fill in the blank 5ad7e8ffffcef80_25 |
Sales | $fill in the blank 5ad7e8ffffcef80_26 | $fill in the blank 5ad7e8ffffcef80_27 | $fill in the blank 5ad7e8ffffcef80_28 | $fill in the blank 5ad7e8ffffcef80_29 | $fill in the blank 5ad7e8ffffcef80_30 |
Total Sales | $fill in the blank 5ad7e8ffffcef80_31 | $fill in the blank 5ad7e8ffffcef80_32 | $fill in the blank 5ad7e8ffffcef80_33 | $fill in the blank 5ad7e8ffffcef80_34 | $fill in the blank 5ad7e8ffffcef80_35 |
Question Content Area
2. Prepare a separate production budget for each product for each of the first three quarters of the year.
Production budget for customs:
Quarter 1 | Quarter 2 | Quarter 3 | |
---|---|---|---|
Unit sales | fill in the blank bd4d86f6a021fc6_1 | fill in the blank bd4d86f6a021fc6_2 | fill in the blank bd4d86f6a021fc6_3 |
Desired ending inventoryLess: Beginning inventoryUnits producedUnit sales | - Select - | - Select - | - Select - |
Total needed | fill in the blank bd4d86f6a021fc6_8 | fill in the blank bd4d86f6a021fc6_9 | fill in the blank bd4d86f6a021fc6_10 |
Desired ending inventoryLess: Beginning inventoryUnits producedUnit sales | - Select - | - Select - | - Select - |
Units produced | fill in the blank bd4d86f6a021fc6_15 | fill in the blank bd4d86f6a021fc6_16 | fill in the blank bd4d86f6a021fc6_17 |
Question Content Area
Production budget for basics:
Quarter 1 | Quarter 2 | Quarter 3 | |
---|---|---|---|
Unit sales | fill in the blank 9337e2fe402a03e_1 | fill in the blank 9337e2fe402a03e_2 | fill in the blank 9337e2fe402a03e_3 |
Desired ending inventoryLess: Beginning inventoryUnits producedUnit sales | - Select - | - Select - | - Select - |
Total needed | fill in the blank 9337e2fe402a03e_8 | fill in the blank 9337e2fe402a03e_9 | fill in the blank 9337e2fe402a03e_10 |
Desired ending inventoryLess: Beginning inventoryUnits producedUnit sales | - Select - | - Select - | - Select - |
Units produced | fill in the blank 9337e2fe402a03e_15 | fill in the blank 9337e2fe402a03e_16 | fill in the blank 9337e2fe402a03e_17 |
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