Question

Production Budget Assume that stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 2011 1,300 Second quarter, 2011 2,200 1,400 Third quarter, 2011 5,600 5,300 Fourth quarter, 2011 4,600 900 3,900 1,200 First quarter, 2012 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 2011 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending Inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12L5 in ending inventory Required: Prepare a production budget for each quarter for 2011 and for the year in total. Enter amounts as positive numbers. Stillwater Designs Production Budget for 512L7 For the Year Ended December 31, 2011 Latour. 2nd Qur. 3rd Qtr. 4th Qtr. 1.200 6 4 .000 Year 13,200 Desired ending inventory Check My Work Previous Next >

Answer 1

Production Budget for S12L7 1st QTR 2nd QTR 3rd QTR 4th QTR Year sales ADD: Desired Ending inventory Total Needed Less: beginning inventory Required units in Units 2200 5600 800 4600 13200 180 440 1120 920 180 6520 1240 3320 4780 13380 340 440 1120 920 340 5400 13040 900 2880 3860 Desired Ending Invntory ( 20% of Next Qtr sales) Production Budget For S12L5 1st QTR 2nd QTR 3rd QTR 4th QTR Year Budgeted Units Sales ADD: Desired Ending inventory Total Needed Less: beginning inventory Required units in Units 5300 1300 1400 3900 11900 1590 420 1170 360 360 4260 1720 2990 6470 12260 1590 170 420 1170 170 1550 2570 4880 3090 12090 Desired Ending Invntory 30% of Next Qtr sales)