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 11,000     90,000     Second quarter 14,200     88,600     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 97a473f95f95fa7_1 fill in the blank 97a473f95f95fa7_2 fill in the blank 97a473f95f95fa7_3 fill in the blank 97a473f95f95fa7_4 fill in the blank 97a473f95f95fa7_5 Unit price $fill in the blank 97a473f95f95fa7_6 $fill in the blank 97a473f95f95fa7_7 $fill in the blank 97a473f95f95fa7_8 $fill in the blank 97a473f95f95fa7_9 $fill in the blank 97a473f95f95fa7_10 Sales $fill in the blank 97a473f95f95fa7_11 $fill in the blank 97a473f95f95fa7_12 $fill in the blank 97a473f95f95fa7_13 $fill in the blank 97a473f95f95fa7_14 $fill in the blank 97a473f95f95fa7_15 Basic:           Units fill in the blank 97a473f95f95fa7_16 fill in the blank 97a473f95f95fa7_17 fill in the blank 97a473f95f95fa7_18 fill in the blank 97a473f95f95fa7_19 fill in the blank 97a473f95f95fa7_20 Unit price $fill in the blank 97a473f95f95fa7_21 $fill in the blank 97a473f95f95fa7_22 $fill in the blank 97a473f95f95fa7_23 $fill in the blank 97a473f95f95fa7_24 $fill in the blank 97a473f95f95fa7_25 Sales $fill in the blank 97a473f95f95fa7_26 $fill in the blank 97a473f95f95fa7_27 $fill in the blank 97a473f95f95fa7_28 $fill in the blank 97a473f95f95fa7_29 $fill in the blank 97a473f95f95fa7_30 Total Sales $fill in the blank 97a473f95f95fa7_31 $fill in the blank 97a473f95f95fa7_32 $fill in the blank 97a473f95f95fa7_33 $fill in the blank 97a473f95f95fa7_34 $fill in the blank 97a473f95f95fa7_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 897faff5207a055_1 fill in the blank 897faff5207a055_2 fill in the blank 897faff5207a055_3   - Select - - Select - - Select - Total needed fill in the blank 897faff5207a055_8 fill in the blank 897faff5207a055_9 fill in the blank 897faff5207a055_10   - Select - - Select - - Select - Units produced fill in the blank 897faff5207a055_15 fill in the blank 897faff5207a055_16 fill in the blank 897faff5207a055_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 6920f5032032fd1_1 fill in the blank 6920f5032032fd1_2 fill in the blank 6920f5032032fd1_3   - Select - - Select - - Select - Total needed fill in the blank 6920f5032032fd1_8 fill in the blank 6920f5032032fd1_9 fill in the blank 6920f5032032fd1_10   - Select - - Select - - Select - Units produced fill in the blank 6920f5032032fd1_15 fill in the blank

Q: Sales and Production Budgets Archer Company produces two products: the custom and the basic. The…

A: The objective of the question is to prepare a sales budget for each quarter and for the year in…

Q: MM Company budgets sales of $53,000 for May. MM's production manager discovered a way to use more…

A: Budget means the prediction of future period revenue and expenses. The very first budget that any…

Q: First quarter Second quarter Third quarter Fourth quarter Deluxe Standard 11,000 90,000 14,200…

A: The sales budget is prepared at the beginning of the period that shows the sales units that take…

Q: Swifty Corporation estimates its sales at 210000 units in the first quarter and that sales will…

A: Cash collection refers to an amount collected from the sale of goods or rendering services to the…

Q: MNO Company has projected to sell 500,000 units of its primary product in 2022. It estimates the…

A: Total production cost per unit = direct material + direct labor + manufacturing overhead = 5+7+8 =…

Q: Heartbeat Manufacturing Company (HMC) allows employees to purchase, at cost, constructionm materials…

A: “Hey, since there are multiple questions posted, we will answer only one question as per our…

Q: Suhana Corporation manufactures and sells a seasonal product that has peak sales in the third…

A: Calculate the budgeted sales for each quarter as follows: Quarter 1 (Year 2): Quarter 2 (Year 2):…

Q: You Matter and Make a Difference (YMMD) is in the process of budgeting for the total number of units…

A: Units produced means the number of units that are made by the entity during a period. It is…

Q: The partnership of GENO and PEARLS i

A: First of all we need to prepare the production budget to calculate how many units are actually…

Q: A small business owner wants to create a budget for the upcoming year. The business has projected…

A: Net Income is the difference between total revenue and total expense of the business. Net Income…

Q: Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b.…

A: The question is related to Marginal Costing. The sales mix is the proportion of sales units sold by…

Q: Sales Estimate 800,000 950,000 1,100,000 0.40 Probability 0.35 0.25

A: EMV=Probability x affect Where: EMV= Expected monetary value

Q: Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The…

A: step

Q: Sales budget Pataky Co.'s sales manager estimates that 2,400,000 units of product RI# 698 will be…

A: Sales budget is basically a financial plan that estimates a company's total revenue in a specific…

Q: Mirabel Manufacturing Budgeted Income Statement For the Year Ending December 31 Sales 36,750,000…

A: Break-even point: It is a financial calculation for determining the number of products or services a…

Q: Ocean Company is conducting a cost-volume-profit (CVP) analysis and has just prepared the following…

A: Cost-volume profit analysis: This is the tool to measure the changes in operating profit due to the…

Q: Sweet Acacia Company produces and sells automobile batteries, including the heavy-duty HD-240. The…

A: The production budget is a part of the master budget that estimates the unit should be produced on…

Q: Use the following information for the Quick Study below. (Algo) [The following information applies…

A: An estimated or projected or sales value and cost estimate can be included in a budget that is…

Q: Cincinnati Tool Company (CTC) manufactures a line of electric garden tools that are sold in general…

A: Break-even is the point at which an entity is in a situation of no profit and no loss. At this…

Q: he marketing department of XYZ Corporation has submitted the following sales forecast for the…

A: Budgets are prepared to estimate the amount of sales, cash collection, cash payments, and production…

Q: Anderson Foods produces spécialty soup sold in jars. The projected sales in dollars and jars for…

A: Formula: Desired ending inventory  =Following month sales  units x 25% Beginning inventory = Current…

Q: s of its produc Actual fixed costs of $44,000 exceeded budgeted fixed costs by $3,500. Prepare…

A: The flexible budget is prepared for actual production level on the basis of the standard rates. The…

Q: Sales budgetPataky Co.’s sales manager estimates that 2,000,000 units of product RI#698 will be sold…

A: The objective of the question is to calculate the total revenue under each scenario. The total…

Q: MM Company budgets sales of $45,000 for May. MM's production manager discovered a way to use more…

A: Budget means the prediction of future period revenue and expenses. The very first budget that any…

Q: 6. A company budgets to sells its three products A, B and C in the ratio 2:3:5 respectively,…

A: We are Provided the Following Information :A:B:C are Sold in the Ratio = 2:3:5ProductsABCSales Price…

Q: Wet Mop Incorporated expects to sell 10,000 mops. Fixed costs (for the year) are expected to be…

A: There are two type of costs being incurred in the business. One is fixed costs and other is variable…

Q: Finch Company produces two products. Budgeted annual income statements for the two products are…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40,and the…

A: Budgets are forecasts made at the beginning of the period to determine the estimated sales units…

Q: Archer Company produces two products: the custom and the basic. The custom sells for $30, and the…

A: Budgets are the statements prepared by the entity for the purpose of…

Q: ML sells three products: Good,  Better and Best. The market for the products dictates that the…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: GSI has a new product for their line. they start with 20,000 units at a cost of 21.50 per unit and…

A: In order to determine the Gross profit, the cost of goods sold is required to be deducted from the…

Q: Example 1: Purchases Budget Problem for Retailing Concern. Note that the format shown here is the…

A: Purchase budget: Careful planning of purchases offers one of the most significant areas of cost…

Q: Executive officers of Munoz Company are wrestling with their budget for the next year. The following…

A: A person may set aside a certain amount of money for investments and savings by using a budget. This…

Q: 5

A: Contribution margin ratio is calculated as under = Contribution/Sales Value Contribution = Sales…

Q: The marketing department of Jessi Corporation submitted the following sales forecast for next year…

A: The expected cash collection refers to the cash that is expected to be collected by a company in the…

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.