Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Claire Strum, the company?s sales manager, prepared the following sales forecast for 2015. The forecasted sales prices include a 5 percent increase in the acoustic guitar price and a 10 percent increase in the electric guitar price, to cover anticipated increases in raw materials prices.

6/15/2016 Problem 5-31 (Part Level Submission) Print by: Bradley Lunsford GB519: Measurement and Decision Making 1604D02 / Unit 3 Graded Quiz *Problem 531 (Part Level Submission) Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Claire Strum, the company's sales manager, prepared the following sales forecast for 2015. The forecasted sales prices include a 5 percent increase in the acoustic guitar price and a 10 percent increase in the electric guitar price, to cover anticipated increases in raw materials prices. Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Acoustic guitar sales $1,360 400 560 370 640 Electric guitar sales $2,590 240 80 160 130 *(a) Your answer is correct. Prepare Strum's sales budget for 2015. Sales Budget st 1 Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Acoustic: Budgeted units sold Budgeted sales price Budgeted revenue 400 560 370 640 1970 $ 1360 $ 1360 $ 1360 $ 1360 $ 1360 $ 544000 $ 761600 $ 503200 240 80 160 130 610 $ 2590 $ 2590 $ 2590 $ 2590 $ 2590 $ 621600 $ 207200 $ 414400 $ 336700 $ 1579900 $ 1165600 $ 968800 $ 917600 $ 1207100 $ 4259100 $ 870400 $ 2679200 Electric: Budgeted units sold Budgeted sales price Budgeted revenue Total revenue Attempts: 1 of 1 used *(b) On December 31, 2014, Strum had 60 acoustic guitars in stockfewer than the desired inventory level of 80 guitars, based on the following quarter's sales. The company has budgeted for sales of 550 acoustic guitars in the first quarter of 2016. Strum wants to maintain an ending inventory equal to 20 percent of the following quarter's sales. Prepare the 2015 production budget for acoustic guitars. Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni Annual 1/2 6/15/2016 Problem 5-31 (Part Level Submission) [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] [no answer] Attempts: 0 of 1 used *(c) The parts of this question must be completed in order. This part will be available when you complete the part above. Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 2/2 6/15/2016 Problem 5-32 (Part Level Submission) Print by: Bradley Lunsford GB519: Measurement and Decision Making 1604D02 / Unit 3 Graded Quiz *Problem 532 (Part Level Submission) Sandoval Furniture builds highend handmade dining tables. Mackenzie Sandoval, the company's owner, has developed the following sales forecast for 2015. Forecasted sales (tables) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2,563 2,756 2,990 1,767 Because of the time needed to create each table, Sandoval maintains an ending Finished Goods Inventory of 20 percent of the following quarter's budgeted sales. Sandoval has been following this inventory policy for several years. The company ended 2014 with 513 tables on hand. The standard cost card for a table is as follows: American cherry wood American cherry turning square (legs) Standard Quantity Standard Price 25 board feet $4/board foot 4 squares Total Standard Cost $100 $9/square 36 Direct labor 12 DLH $16/DLH 192 Variable overhead 12 DLH $60/DLH 720 Fixed overhead 12 DLH $10/DLH 120 $1,168 *(a) Prepare Sandoval's production budget for 2015. Assume that the desired ending inventory for 2015 is 593 tables. (Round answers to 0 decimal places, e.g. 5,275.) Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted Production Attempts: 0 of 1 used *(b) The parts of this question must be completed in order. This part will be available when you complete the part above. *(c) The parts of this question must be completed in order. This part will be available when you complete the part above. *(d) The parts of this question must be completed in order. This part will be available when you complete the part above. Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 1/1