Sales and Production Budgets

Archer Company produces two products: the custom and the basic. The custom sells for $$30,$ and the besic sells for $$8.$ Projected saies of the two models for the coming four quarters are given below.

$\backslash$table$[[,$Custom,Basic$],[$First cuarter,$11,000,90,000],[$Second quarter,$14,200,88,600],[$Third quarter,$16,800,92,000],[$Fourth quarter,$20,000,91,400]]$

The president of the cormpany believes that the projected sales are realistic and can be achieved by the company. In the factery, the production supervisor has reselved the projected sales ngures and gathered information needed to corripite production budgets. He found that $800$ customs ard $1,140$ Dasics were in inventory on January,$1.$ Company policy cictates that ending nventory shouid equal $20$ percent of the next quarter's sales for customs and $10$ percent of next quarter's sales far basics.

Required:

Prepare a seles dudgec for each quarter and to the year in tctal. Show sales by product and in tota for each tume penod.

Archer Company

Sales Eudgat

For the Year Endec December $31$

Quarter $1$

Quarter $2$

Quarter $3$

Quarter $4$

Yea$-$

Custom:

Units

Archer Campasme Sales huriges

For then Year Fnded December $31$

Mrodaction bulget for customs:

Archer Company

Proeuction Budget fo: Customs First Three Quarters of the Year $q,$ ririt Three Quarters of the Year Quater $1$ Ouaner? $$arar $3$

$1$hit $=$ me

$$

GRe ilmuen