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 First quarter, 20Y1 Second quarter, 20Y1 1,960 Third quarter, 20Y1 7,420 Fourth quarter, 20Y1 5,460 First quarter, 20Y2 1,680 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. 1,120 S12L5 3,080 7,840 6,440 1,260 1,820 Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to outside manufacturers). Beginning inventory of S12L7 for the first quarter of 20Y1 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.

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 First quarter, 20Y1 Second quarter, 20Y1 1,960 Third quarter, 20Y1 7,420 Fourth quarter, 20Y1 5,460 First quarter, 20Y2 1,680 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. 1,120 S12L5 3,080 7,840 6,440 1,260 1,820 Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to outside manufacturers). Beginning inventory of S12L7 for the first quarter of 20Y1 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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 51E

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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, 20Y1 1,120 1,820 Second quarter, 20Y1 3,080 1,960 Third quarter, 20Y1 7,840 7,420 Fourth quarter, 20Y1 6,440 5,460 First quarter, 20Y2 1,260 1,680 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 20Y1 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…
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, 20Y1 840 1,365 Second quarter, 20Y1 2,310 1,470 Third quarter, 20Y1 5,880 5,565 Fourth quarter, 20Y1 4,830 4,095 First quarter, 20Y2 945 1,260 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 20Y1 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…
Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $627, and the S12L5 sells for $396. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 800 1,300 Second quarter, 20Y1 2,200 1,400 Third quarter, 20Y1 5,600 5,300 Fourth quarter, 20Y1 4,600 3,900 First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year S12L7: Units fill in the blank 2f6b2604ff91fe0_1 fill in the blank 2f6b2604ff91fe0_2 fill in the blank 2f6b2604ff91fe0_3 fill in the blank 2f6b2604ff91fe0_4 fill in the blank 2f6b2604ff91fe0_5…
Sales Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $656, and the S12L5 sells for $414. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 800 1,300 Second quarter, 20Y1 2,200 1,400 Third quarter, 20Y1 5,600 5,300 Fourth quarter, 20Y1 4,600 3,900 First quarter, 20Y2 900 1,200 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Required: Prepare a sales budget for each quarter of 20Y1 and for the year in total. Show sales by product and in total for each time period. Do not include a multiplication symbol as part of your answer. Stillwater Designs Sales Budget For the Year Ended December 31, 20Y1 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year S12L7: Units Price $ $ $ $ $ Sales $ $ $ $ $ S12L5: Units Price $ $ $ $ $…
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