Question
Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10.
Sales and Production Budgets
Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below.
Deluxe Standard First quarter 11,000 90,000 Second quarter 14,500 88,200 Third quarter 16,500 93,000 Fourth quarter 20,000 91,800 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 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarters sales for deluxes and 10 percent of next quarters sales for standards.
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.
Berring Company Sales Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Deluxe: Units fill in the blank 246aaff51f8fff4_1 fill in the blank 246aaff51f8fff4_2 fill in the blank 246aaff51f8fff4_3 fill in the blank 246aaff51f8fff4_4 fill in the blank 246aaff51f8fff4_5 Unit price $fill in the blank 246aaff51f8fff4_6 $fill in the blank 246aaff51f8fff4_7 $fill in the blank 246aaff51f8fff4_8 $fill in the blank 246aaff51f8fff4_9 $fill in the blank 246aaff51f8fff4_10 Sales $fill in the blank 246aaff51f8fff4_11 $fill in the blank 246aaff51f8fff4_12 $fill in the blank 246aaff51f8fff4_13 $fill in the blank 246aaff51f8fff4_14 $fill in the blank 246aaff51f8fff4_15 Standard: Units fill in the blank 246aaff51f8fff4_16 fill in the blank 246aaff51f8fff4_17 fill in the blank 246aaff51f8fff4_18 fill in the blank 246aaff51f8fff4_19 fill in the blank 246aaff51f8fff4_20 Unit price $fill in the blank 246aaff51f8fff4_21 $fill in the blank 246aaff51f8fff4_22 $fill in the blank 246aaff51f8fff4_23 $fill in the blank 246aaff51f8fff4_24 $fill in the blank 246aaff51f8fff4_25 Sales $fill in the blank 246aaff51f8fff4_26 $fill in the blank 246aaff51f8fff4_27 $fill in the blank 246aaff51f8fff4_28 $fill in the blank 246aaff51f8fff4_29 $fill in the blank 246aaff51f8fff4_30 Total Sales $fill in the blank 246aaff51f8fff4_31 $fill in the blank 246aaff51f8fff4_32 $fill in the blank 246aaff51f8fff4_33 $fill in the blank 246aaff51f8fff4_34 $fill in the blank 246aaff51f8fff4_35 2. Prepare a separate production budget for each product for each of the first three quarters of the year.
Production budget for deluxes:
Berring Company Production Budget for Deluxes First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank d78fc2f9bffefd1_1 fill in the blank d78fc2f9bffefd1_2 fill in the blank d78fc2f9bffefd1_3 fill in the blank d78fc2f9bffefd1_5 fill in the blank d78fc2f9bffefd1_6 fill in the blank d78fc2f9bffefd1_7 Total needed fill in the blank d78fc2f9bffefd1_8 fill in the blank d78fc2f9bffefd1_9 fill in the blank d78fc2f9bffefd1_10 fill in the blank d78fc2f9bffefd1_12 fill in the blank d78fc2f9bffefd1_13 fill in the blank d78fc2f9bffefd1_14 Units produced fill in the blank d78fc2f9bffefd1_15 fill in the blank d78fc2f9bffefd1_16 fill in the blank d78fc2f9bffefd1_17 Production budget for standards:
Berring Company Production Budget for Standards First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 0a3b0f04cfe9006_1 fill in the blank 0a3b0f04cfe9006_2 fill in the blank 0a3b0f04cfe9006_3 fill in the blank 0a3b0f04cfe9006_5 fill in the blank 0a3b0f04cfe9006_6 fill in the blank 0a3b0f04cfe9006_7 Total needed fill in the blank 0a3b0f04cfe9006_8 fill in the blank 0a3b0f04cfe9006_9 fill in the blank 0a3b0f04cfe9006_10 fill in the blank 0a3b0f04cfe9006_12 fill in the blank 0a3b0f04cfe9006_13 fill in the blank 0a3b0f04cfe9006_14 Units produced fill in the blank 0a3b0f04cfe9006_15 fill in the blank 0a3b0f04cfe9006_16 fill in the blank 0a3b0f04cfe9006_17
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