Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

sles and Production Budgets erring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard selfs for $10.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
sles and Production Budgets erring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard selfs for $10. Projected sales of the wo models for the coming four quarters are given below. Deluxe Standard First quarter 11,000 90,000 Second quarter 14,200 88,200 Third quarter 16,500 93,000 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 Quarter 2 Quarter 3 Quarter 4 Year Deluxe Units 11.000 14200 16500 20.000 61.700 Next Ched: My Work 69 PM eBook Calculator 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 11.000 14.200 16,500 20,000 61.700 40 40 40 Unit price 40 40 Sales 440.000 563.000 660,000 300,000 24600,000 Standard: Units 90.000 B0.200 93,000 91.400 362.600 10 10 10 10 10 Unit price Sales 9.000 8,820 9.300 3.626.000 9.140 449,000 576.820 669,300 309,140 Total Sales 6.094.000 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 The Van Nex Check My Work agenow.com/ilm/take Assignment/take AssignmentMain.do?invoker-&takeAssignments eBook Calculator 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 Quarter 1 Unit sales Desired ending Inventory Total needed Less: Beginning inventory Units produced units to be produced are calculated by considering beginning and endino (desired) inventory amounts and unit sales. Production budget for standards Berring Company Check My Work Berring Company Production Budget for Standards First Three Quarters of the Year Quarter Quarter 2 Quarter Unit sales Desired ending inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

13th Canadian Edition

1119740460, 978-1119740469

More Books

Students also viewed these Accounting questions

Question

Design a cross-cultural preparation program. page 313

Answered: 1 week ago

Question

Evaluate employees readiness for training. page 289

Answered: 1 week ago