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 12,000 90,000 Second quarter 14,200 88,200 Third quarter 16,800 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 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 CompanySales BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Custom: Units fill in the blank 82e0ca041072fa3_1 fill in the blank 82e0ca041072fa3_2 fill in the blank 82e0ca041072fa3_3 fill in the blank 82e0ca041072fa3_4 fill in the blank 82e0ca041072fa3_5 Unit price $fill in the blank 82e0ca041072fa3_6 $fill in the blank 82e0ca041072fa3_7 $fill in the blank 82e0ca041072fa3_8 $fill in the blank 82e0ca041072fa3_9 $fill in the blank 82e0ca041072fa3_10 Sales $fill in the blank 82e0ca041072fa3_11 $fill in the blank 82e0ca041072fa3_12 $fill in the blank 82e0ca041072fa3_13 $fill in the blank 82e0ca041072fa3_14 $fill in the blank 82e0ca041072fa3_15 Basic: Units fill in the blank 82e0ca041072fa3_16 fill in the blank 82e0ca041072fa3_17 fill in the blank 82e0ca041072fa3_18 fill in the blank 82e0ca041072fa3_19 fill in the blank 82e0ca041072fa3_20 Unit price $fill in the blank 82e0ca041072fa3_21 $fill in the blank 82e0ca041072fa3_22 $fill in the blank 82e0ca041072fa3_23 $fill in the blank 82e0ca041072fa3_24 $fill in the blank 82e0ca041072fa3_25 Sales $fill in the blank 82e0ca041072fa3_26 $fill in the blank 82e0ca041072fa3_27 $fill in the blank 82e0ca041072fa3_28 $fill in the blank 82e0ca041072fa3_29 $fill in the blank 82e0ca041072fa3_30 Total Sales $fill in the blank 82e0ca041072fa3_31 $fill in the blank 82e0ca041072fa3_32 $fill in the blank 82e0ca041072fa3_33 $fill in the blank 82e0ca041072fa3_34 $fill in the blank 82e0ca041072fa3_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 CompanyProduction Budget for CustomsFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 8f00f0f6902e014_1 fill in the blank 8f00f0f6902e014_2 fill in the blank 8f00f0f6902e014_3 - Select - - Select - - Select - Total needed fill in the blank 8f00f0f6902e014_8 fill in the blank 8f00f0f6902e014_9 fill in the blank 8f00f0f6902e014_10 - Select - - Select - - Select - Units produced fill in the blank 8f00f0f6902e014_15 fill in the blank 8f00f0f6902e014_16 fill in the blank 8f00f0f6902e014_17 Question Content Area Production budget for basics: Archer CompanyProduction Budget for BasicsFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 34e1f3fd304aff0_1 fill in the blank 34e1f3fd304aff0_2 fill in the blank 34e1f3fd304aff0_3 - Select - - Select - - Select - Total needed fill in the blank 34e1f3fd304aff0_8 fill in the blank 34e1f3fd304aff0_9 fill in the blank 34e1f3fd304aff0_10 - Select - - Select - - Select - Units produced
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 12,000 90,000 Second quarter 14,200 88,200 Third quarter 16,800 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 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 CompanySales BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Custom: Units fill in the blank 82e0ca041072fa3_1 fill in the blank 82e0ca041072fa3_2 fill in the blank 82e0ca041072fa3_3 fill in the blank 82e0ca041072fa3_4 fill in the blank 82e0ca041072fa3_5 Unit price $fill in the blank 82e0ca041072fa3_6 $fill in the blank 82e0ca041072fa3_7 $fill in the blank 82e0ca041072fa3_8 $fill in the blank 82e0ca041072fa3_9 $fill in the blank 82e0ca041072fa3_10 Sales $fill in the blank 82e0ca041072fa3_11 $fill in the blank 82e0ca041072fa3_12 $fill in the blank 82e0ca041072fa3_13 $fill in the blank 82e0ca041072fa3_14 $fill in the blank 82e0ca041072fa3_15 Basic: Units fill in the blank 82e0ca041072fa3_16 fill in the blank 82e0ca041072fa3_17 fill in the blank 82e0ca041072fa3_18 fill in the blank 82e0ca041072fa3_19 fill in the blank 82e0ca041072fa3_20 Unit price $fill in the blank 82e0ca041072fa3_21 $fill in the blank 82e0ca041072fa3_22 $fill in the blank 82e0ca041072fa3_23 $fill in the blank 82e0ca041072fa3_24 $fill in the blank 82e0ca041072fa3_25 Sales $fill in the blank 82e0ca041072fa3_26 $fill in the blank 82e0ca041072fa3_27 $fill in the blank 82e0ca041072fa3_28 $fill in the blank 82e0ca041072fa3_29 $fill in the blank 82e0ca041072fa3_30 Total Sales $fill in the blank 82e0ca041072fa3_31 $fill in the blank 82e0ca041072fa3_32 $fill in the blank 82e0ca041072fa3_33 $fill in the blank 82e0ca041072fa3_34 $fill in the blank 82e0ca041072fa3_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 CompanyProduction Budget for CustomsFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 8f00f0f6902e014_1 fill in the blank 8f00f0f6902e014_2 fill in the blank 8f00f0f6902e014_3 - Select - - Select - - Select - Total needed fill in the blank 8f00f0f6902e014_8 fill in the blank 8f00f0f6902e014_9 fill in the blank 8f00f0f6902e014_10 - Select - - Select - - Select - Units produced fill in the blank 8f00f0f6902e014_15 fill in the blank 8f00f0f6902e014_16 fill in the blank 8f00f0f6902e014_17 Question Content Area Production budget for basics: Archer CompanyProduction Budget for BasicsFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 34e1f3fd304aff0_1 fill in the blank 34e1f3fd304aff0_2 fill in the blank 34e1f3fd304aff0_3 - Select - - Select - - Select - Total needed fill in the blank 34e1f3fd304aff0_8 fill in the blank 34e1f3fd304aff0_9 fill in the blank 34e1f3fd304aff0_10 - Select - - Select - - Select - Units produced
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
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 | 12,000 | 90,000 |
| Second quarter | 14,200 | 88,200 |
| Third quarter | 16,800 | 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 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.
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
| Custom: | |||||
| Units | fill in the blank 82e0ca041072fa3_1 | fill in the blank 82e0ca041072fa3_2 | fill in the blank 82e0ca041072fa3_3 | fill in the blank 82e0ca041072fa3_4 | fill in the blank 82e0ca041072fa3_5 |
| Unit price | $fill in the blank 82e0ca041072fa3_6 | $fill in the blank 82e0ca041072fa3_7 | $fill in the blank 82e0ca041072fa3_8 | $fill in the blank 82e0ca041072fa3_9 | $fill in the blank 82e0ca041072fa3_10 |
| Sales | $fill in the blank 82e0ca041072fa3_11 | $fill in the blank 82e0ca041072fa3_12 | $fill in the blank 82e0ca041072fa3_13 | $fill in the blank 82e0ca041072fa3_14 | $fill in the blank 82e0ca041072fa3_15 |
| Basic: | |||||
| Units | fill in the blank 82e0ca041072fa3_16 | fill in the blank 82e0ca041072fa3_17 | fill in the blank 82e0ca041072fa3_18 | fill in the blank 82e0ca041072fa3_19 | fill in the blank 82e0ca041072fa3_20 |
| Unit price | $fill in the blank 82e0ca041072fa3_21 | $fill in the blank 82e0ca041072fa3_22 | $fill in the blank 82e0ca041072fa3_23 | $fill in the blank 82e0ca041072fa3_24 | $fill in the blank 82e0ca041072fa3_25 |
| Sales | $fill in the blank 82e0ca041072fa3_26 | $fill in the blank 82e0ca041072fa3_27 | $fill in the blank 82e0ca041072fa3_28 | $fill in the blank 82e0ca041072fa3_29 | $fill in the blank 82e0ca041072fa3_30 |
| Total Sales | $fill in the blank 82e0ca041072fa3_31 | $fill in the blank 82e0ca041072fa3_32 | $fill in the blank 82e0ca041072fa3_33 | $fill in the blank 82e0ca041072fa3_34 | $fill in the blank 82e0ca041072fa3_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:
| Quarter 1 | Quarter 2 | Quarter 3 | |
|---|---|---|---|
| Unit sales | fill in the blank 8f00f0f6902e014_1 | fill in the blank 8f00f0f6902e014_2 | fill in the blank 8f00f0f6902e014_3 |
|
|
- Select - | - Select - | - Select - |
| Total needed | fill in the blank 8f00f0f6902e014_8 | fill in the blank 8f00f0f6902e014_9 | fill in the blank 8f00f0f6902e014_10 |
|
|
- Select - | - Select - | - Select - |
| Units produced | fill in the blank 8f00f0f6902e014_15 | fill in the blank 8f00f0f6902e014_16 | fill in the blank 8f00f0f6902e014_17 |
Question Content Area
Production budget for basics:
| Quarter 1 | Quarter 2 | Quarter 3 | |
|---|---|---|---|
| Unit sales | fill in the blank 34e1f3fd304aff0_1 | fill in the blank 34e1f3fd304aff0_2 | fill in the blank 34e1f3fd304aff0_3 |
|
|
- Select - | - Select - | - Select - |
| Total needed | fill in the blank 34e1f3fd304aff0_8 | fill in the blank 34e1f3fd304aff0_9 | fill in the blank 34e1f3fd304aff0_10 |
|
|
- Select - | - Select - | - Select - |
| Units produced |
Transcribed Image Text: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
12,000
90,000
14,200
88,200
Second quarter
Third quarter
Fourth quarter
16,800
93,000
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 gathere
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:
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
Custom:
Units
Unit price
Sales
Basic:
Units
Unit price
Sales
Total Sales
Unit sales
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
needed
Units produced
Production budget for basics:
Unit sales
Archer Company
Production Budget for Basics
First Three Quarters of the Year
Total needed
Quarter 4
Units produced
Quarter 1 Quarter 2 Quarter 3
000 0000
0000000
Year
Quarter 1 Quarter 2 Quarter 3
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