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 11,000 90,000 Second quarter 14,500 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: 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-2 Quarter 3 Quarter 4 Quarter 1 Year Custom: Units 11.000 14.500 16,500 20.000 62.000 Unit price $ 30 30 30 30 120 Sales 33,000 435.000 495.000 600.000 1.563.000 Basic: 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 2 Quarter 3 Quarter 4 Quarter 1 Year Custom: Units 11,000 14,500 16,500 20,000 62,000 Unit 30 30 30 30 120 price Sales 33,000 435,000 495.000 600,000 1,563,000 Basics Units 90,000 88,600 92,000 91.400 362.000 Unit price 8.00 8 8 32 Sales 720,000 708,800 736,000 731,200 2,896,000 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 Quarter 2 Quarter Unit sales Total needed Units produced Production budget for basics: Archer Company Production Budget for Basics First Three Quarters of the Year Quarter Quarter 1 2 Quarter 3 Unit sales Total needed Units produced