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Each acoustic guitar requires a maple neck blank, which Swifty purchases for $45. On December 31, 2021, Swifty had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Swifty wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Swifty that the delivery issues will be resolved by the end of December, Swifty wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022. Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Standard necks per guitar 1.5 1.5 Budgeted production 282 296 Production needs 423 444 Budgeted ending inventory 222 249 Total DM required (necks) 645 693 Beginning inventory 200 222 Budgeted purchases (necks) 445 471 Standard necks per guitar 45 45 Budgeted purchases (necks) 20025 21195 eTevthook and Media Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 1.5 1.5 1.5 1.5 296 332 306 1216 444 498 459 1824 249 230 150 150 693 728 609 1974 222 249 230 200 471 479 379 1774 45 45 45 45 21195 %24 21555 17055 49830 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 > > %24 %24

Each acoustic guitar requires a maple neck blank, which Swifty purchases for $45. On December 31, 2021, Swifty had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Swifty wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Swifty that the delivery issues will be resolved by the end of December, Swifty wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022. Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Standard necks per guitar 1.5 1.5 Budgeted production 282 296 Production needs 423 444 Budgeted ending inventory 222 249 Total DM required (necks) 645 693 Beginning inventory 200 222 Budgeted purchases (necks) 445 471 Standard necks per guitar 45 45 Budgeted purchases (necks) 20025 21195 eTevthook and Media Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 1.5 1.5 1.5 1.5 296 332 306 1216 444 498 459 1824 249 230 150 150 693 728 609 1974 222 249 230 200 471 479 379 1774 45 45 45 45 21195 %24 21555 17055 49830 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 > > %24 %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Swifty Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Patricia Johnson, the company’s sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% 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
   $1,200     200     280     320     350    
Electric guitar sales
   $2,150     400     350     320     360

 

 

Please help me fill out the red shown in the picture. 

Each acoustic guitar requires a maple neck blank, which Swifty purchases for $45. On December 31, 2021, Swifty had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Swifty wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Swifty that the delivery issues will be resolved by the end of December, Swifty wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022. Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Standard necks per guitar 1.5 1.5 Budgeted production 282 296 Production needs 423 444 Budgeted ending inventory 222 249 Total DM required (necks) 645 693 Beginning inventory 200 222 Budgeted purchases (necks) 445 471 Standard necks per guitar 45 45 Budgeted purchases (necks) 20025 21195 2: eTexthook and Media Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 1.5 1.5 1.5 1.5 296 332 306 1216 444 498 459 1824 249 230 150 150 693 728 609 1974 222 249 230 200 471 479 379 1774 45 45 45 45 21195 21555 17055 49830 %24 %24 %24 %24 %24 %24 %24 %24
Transcribed Image Text:Each acoustic guitar requires a maple neck blank, which Swifty purchases for $45. On December 31, 2021, Swifty had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Swifty wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Swifty that the delivery issues will be resolved by the end of December, Swifty wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022. Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter Standard necks per guitar 1.5 1.5 Budgeted production 282 296 Production needs 423 444 Budgeted ending inventory 222 249 Total DM required (necks) 645 693 Beginning inventory 200 222 Budgeted purchases (necks) 445 471 Standard necks per guitar 45 45 Budgeted purchases (necks) 20025 21195 2: eTexthook and Media Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual 1.5 1.5 1.5 1.5 296 332 306 1216 444 498 459 1824 249 230 150 150 693 728 609 1974 222 249 230 200 471 479 379 1774 45 45 45 45 21195 21555 17055 49830 %24 %24 %24 %24 %24 %24 %24 %24
Prepare Swifty's sales budget for 2022. Sales Budget 1st Quarter 2nd Quarter 3rd Quarter Acoustic: Budgeted units sold v 200 280 320 Budgeted sales price v %24 1,200 1,200 24 1,200 Budgeted revenue %24 240,000 336000 384000 Electric: Budgeted units sold 400 350 320 Budgeted sales price 24 2,150 2,150 %$4 2,150 Budgeted revenue 860000 752500 688000 %24 Total revenue %24 1100000 1088500 $4 1072000 eTextbook and Media On December 31, 2021, Swifty had 30 acoustic guitars in stock-fewer than the desired inventory level of 80 guitars, based on the following quarter's sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2023. Prepare the 2022 production budget for acoustic guitars. Production Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted unit sales 200 280 320 Budgeted ending inventory v 112 128 140 Total units required 312 408 460 Beginning inventory 30 i 112 128 i Budgeted production 282 296 332 %24 %24 %24 24 %24 %24 %24
Transcribed Image Text:Prepare Swifty's sales budget for 2022. Sales Budget 1st Quarter 2nd Quarter 3rd Quarter Acoustic: Budgeted units sold v 200 280 320 Budgeted sales price v %24 1,200 1,200 24 1,200 Budgeted revenue %24 240,000 336000 384000 Electric: Budgeted units sold 400 350 320 Budgeted sales price 24 2,150 2,150 %$4 2,150 Budgeted revenue 860000 752500 688000 %24 Total revenue %24 1100000 1088500 $4 1072000 eTextbook and Media On December 31, 2021, Swifty had 30 acoustic guitars in stock-fewer than the desired inventory level of 80 guitars, based on the following quarter's sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2023. Prepare the 2022 production budget for acoustic guitars. Production Budget 1st Quarter 2nd Quarter 3rd Quarter Budgeted unit sales 200 280 320 Budgeted ending inventory v 112 128 140 Total units required 312 408 460 Beginning inventory 30 i 112 128 i Budgeted production 282 296 332 %24 %24 %24 24 %24 %24 %24
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