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Sales and Production Budgets

Archer Company produces two products: the custom and the basic. The custom sells for $$30,$ and the basic sells for $$8.$ Projected sales $of$ the two models for the coming four quarters are given below.

Custom Basic

First quarter $11,00090,000$

Second quarter $14,20088,600$

Third quarter $16,80092,000$

Fourth quarter $20,00091,800$

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 $800$ customs and $1,140$ basics were $in$ inventory $on$ January $1.$ Company policy dictates that ending inventory should equal $20$ percent $of$ the next quarter's sales for customs and $10$ percent $of$ next quarter's sales for basics.

Required:

Question Content Area

$1.$ Prepare a sales budget for each quarter and for the year $in$ total. Show sales $by$ product and $in$ total for each time period.

Archer Company

Sales Budget

For the Year Ended December $31$

Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$ Year

Custom:

Units fill $in$ the blank $d305490dd{079046}_1$

fill $in$ the blank $d305490dd{079046}_2$

fill $in$ the blank $d305490dd{079046}_3$

fill $in$ the blank $d305490dd{079046}_4$

fill $in$ the blank $d305490dd{079046}_5$

Unit price $fill $in$ the blank $d305490dd{079046}_6$

$fill $in$ the blank $d305490dd{079046}_7$

$fill $in$ the blank $d305490dd{079046}_8$

$fill $in$ the blank $d305490dd{079046}_9$

$fill $in$ the blank $d305490dd{079046}_{10}$

Sales $fill $in$ the blank $d305490dd{079046}_{11}$

$fill $in$ the blank $d305490dd{079046}_{12}$

$fill $in$ the blank $d305490dd{079046}_{13}$

$fill $in$ the blank $d305490dd{079046}_{14}$

$fill $in$ the blank $d305490dd{079046}_{15}$

Basic:

Units fill $in$ the blank $d305490dd{079046}_{16}$

fill $in$ the blank $d305490dd{079046}_{17}$

fill $in$ the blank $d305490dd{079046}_{18}$

fill $in$ the blank $d305490dd{079046}_{19}$

fill $in$ the blank $d305490dd{079046}_{20}$

Unit price $fill $in$ the blank $d305490dd{079046}_{21}$

$fill $in$ the blank $d305490dd{079046}_{22}$

$fill $in$ the blank $d305490dd{079046}_{23}$

$fill $in$ the blank $d305490dd{079046}_{24}$

$fill $in$ the blank $d305490dd{079046}_{25}$

Sales $fill $in$ the blank $d305490dd{079046}_{26}$

$fill $in$ the blank $d305490dd{079046}_{27}$

$fill $in$ the blank $d305490dd{079046}_{28}$

$fill $in$ the blank $d305490dd{079046}_{29}$

$fill $in$ the blank $d305490dd{079046}_{30}$

Total Sales $fill $in$ the blank $d305490dd{079046}_{31}$

$fill $in$ the blank $d305490dd{079046}_{32}$

$fill $in$ the blank $d305490dd{079046}_{33}$

$fill $in$ the blank $d305490dd{079046}_{34}$

$fill $in$ the blank $d305490dd{079046}_{35}$

Question Content Area

$2.$ Prepare a separate production budget for each product for each $of$ the first three quarters $of$ the year.

Production budget for customs:

Archer Company

Production Budget for Customs

First Three Quarters $of$ the Year

Quarter $1$ Quarter $2$ Quarter $3$

Unit sales fill $in$ the blank $288193051f86fc{7}_1$

fill $in$ the blank $288193051f86fc{7}_2$

fill $in$ the blank $288193051f86fc{7}_3$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total needed fill $in$ the blank $288193051f86fc{7}_8$

fill $in$ the blank $288193051f86fc{7}_9$

fill $in$ the blank $288193051f86fc{7}_{10}$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Units produced fill $in$ the blank $288193051f86fc{7}_{15}$

fill $in$ the blank $288193051f86fc{7}_{16}$

fill $in$ the blank $288193051f86fc{7}_{17}$

Question Content Area

Production budget for basics:

Archer Company

Production Budget for Basics

First Three Quarters $of$ the Year

Quarter $1$ Quarter $2$ Quarter $3$

Unit sales fill $in$ the blank $f7602701$bfe${4045}_1$

fill $in$ the blank $f7602701$bfe${4045}_2$

fill $in$ the blank $f7602701$bfe${4045}_3$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total needed fill $in$ the blank $f7602701$bfe${4045}_8$

fill $in$ the blank $f7602701$bfe${4045}_9$

fill $in$ the blank $f7602701$bfe${4045}_{10}$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Units produced fill $in$ the blank $f7602701$bfe${4045}_{15}$

fill $in$ the blank $f7602701$bfe${4045}_{16}$

fill $in$ the blank $f7602701$bfe${4045}_{17}$Sales and Production Budgets

percent $of$ the next quarter's sales for customs and $10$ percent $of$ next quarter's sales for basics.

Required:

Prepare a sales budget for each quarter and for the year $in$ total. Show sales $by$ product and $in$ total for each time period.

Archer Company

Sales Budget

For the Year Ended December $31$

Prepare a separate production budget for each product for each $of$ the first three quarters $of$ the year.

Production budget for customs:

Archer Company

Production Budget for Customs

First Three Quarters $of$ the Year

Production budget for basics:

Archer Company

Production Budget for Basics

First Three Quarters $of$ the Year

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