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 12,000 90,000 First quarter Second quarter 14,500 88,200 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 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 quarter's sales for deluxes and 10 percent of next quarter's 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 Unit price $ $ Sales Standard: Units 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 deluxes: Berring Company Production Budget for Deluxes First Three Quarters of the Year Quarter Quarter 1 2 Quarter 3 Unit sales Total needed Units produced Production budget for standards: Berring Company Production Budget for Standards First Three Quarters of the Year Quarter Quarter 1 2 Quarter 3 Unit sales Total needed Units produced