Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below. Deluxe Standard First quarter 11,000 90,000 Second quarter 14,500 88,600 Third quarter 16,800 92,000 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 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for deluxes and 10 percent of next quarter’s sales for standards. 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. Berring Company Sales Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Deluxe: Units fill in the blank da2f9afb206c055_1 fill in the blank da2f9afb206c055_2 fill in the blank da2f9afb206c055_3 fill in the blank da2f9afb206c055_4 fill in the blank da2f9afb206c055_5 Unit price $fill in the blank da2f9afb206c055_6 $fill in the blank da2f9afb206c055_7 $fill in the blank da2f9afb206c055_8 $fill in the blank da2f9afb206c055_9 $fill in the blank da2f9afb206c055_10 Sales $fill in the blank da2f9afb206c055_11 $fill in the blank da2f9afb206c055_12 $fill in the blank da2f9afb206c055_13 $fill in the blank da2f9afb206c055_14 $fill in the blank da2f9afb206c055_15 Standard: Units fill in the blank da2f9afb206c055_16 fill in the blank da2f9afb206c055_17 fill in the blank da2f9afb206c055_18 fill in the blank da2f9afb206c055_19 fill in the blank da2f9afb206c055_20 Unit price $fill in the blank da2f9afb206c055_21 $fill in the blank da2f9afb206c055_22 $fill in the blank da2f9afb206c055_23 $fill in the blank da2f9afb206c055_24 $fill in the blank da2f9afb206c055_25 Sales $fill in the blank da2f9afb206c055_26 $fill in the blank da2f9afb206c055_27 $fill in the blank da2f9afb206c055_28 $fill in the blank da2f9afb206c055_29 $fill in the blank da2f9afb206c055_30 Total Sales $fill in the blank da2f9afb206c055_31 $fill in the blank da2f9afb206c055_32 $fill in the blank da2f9afb206c055_33 $fill in the blank da2f9afb206c055_34 $fill in the blank da2f9afb206c055_35 2. Prepare a separate production budget for each product for each of the first three quarters of the year. Production budget for deluxes: Berring Company Production Budget for Deluxes First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 04340f017011fce_1 fill in the blank 04340f017011fce_2 fill in the blank 04340f017011fce_3 fill in the blank 04340f017011fce_5 fill in the blank 04340f017011fce_6 fill in the blank 04340f017011fce_7 Total needed fill in the blank 04340f017011fce_8 fill in the blank 04340f017011fce_9 fill in the blank 04340f017011fce_10 fill in the blank 04340f017011fce_12 fill in the blank 04340f017011fce_13 fill in the blank 04340f017011fce_14 Units produced fill in the blank 04340f017011fce_15 fill in the blank 04340f017011fce_16 fill in the blank 04340f017011fce_17 Production budget for standards: Berring Company Production Budget for Standards First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 19c497fb601b00a_1 fill in the blank 19c497fb601b00a_2 fill in the blank 19c497fb601b00a_3 fill in the blank 19c497fb601b00a_5 fill in the blank 19c497fb601b00a_6 fill in the blank 19c497fb601b00a_7 Total needed fill in the blank 19c497fb601b00a_8 fill in the blank 19c497fb601b00a_9 fill in the blank 19c497fb601b00a_10 fill in the blank 19c497fb601b00a_12 fill in the blank 19c497fb601b00a_13 fill in the blank 19c497fb601b00a_14 Units produced fill in the blank 19c497fb601b00a_15 fill in the blank 19c497fb601b00a_16 fill in the blank 19c497fb601b00a_17

Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below. Deluxe Standard First quarter 11,000 90,000 Second quarter 14,500 88,600 Third quarter 16,800 92,000 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 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for deluxes and 10 percent of next quarter’s sales for standards. 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. Berring Company Sales Budget For the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Deluxe: Units fill in the blank da2f9afb206c055_1 fill in the blank da2f9afb206c055_2 fill in the blank da2f9afb206c055_3 fill in the blank da2f9afb206c055_4 fill in the blank da2f9afb206c055_5 Unit price $fill in the blank da2f9afb206c055_6 $fill in the blank da2f9afb206c055_7 $fill in the blank da2f9afb206c055_8 $fill in the blank da2f9afb206c055_9 $fill in the blank da2f9afb206c055_10 Sales $fill in the blank da2f9afb206c055_11 $fill in the blank da2f9afb206c055_12 $fill in the blank da2f9afb206c055_13 $fill in the blank da2f9afb206c055_14 $fill in the blank da2f9afb206c055_15 Standard: Units fill in the blank da2f9afb206c055_16 fill in the blank da2f9afb206c055_17 fill in the blank da2f9afb206c055_18 fill in the blank da2f9afb206c055_19 fill in the blank da2f9afb206c055_20 Unit price $fill in the blank da2f9afb206c055_21 $fill in the blank da2f9afb206c055_22 $fill in the blank da2f9afb206c055_23 $fill in the blank da2f9afb206c055_24 $fill in the blank da2f9afb206c055_25 Sales $fill in the blank da2f9afb206c055_26 $fill in the blank da2f9afb206c055_27 $fill in the blank da2f9afb206c055_28 $fill in the blank da2f9afb206c055_29 $fill in the blank da2f9afb206c055_30 Total Sales $fill in the blank da2f9afb206c055_31 $fill in the blank da2f9afb206c055_32 $fill in the blank da2f9afb206c055_33 $fill in the blank da2f9afb206c055_34 $fill in the blank da2f9afb206c055_35 2. Prepare a separate production budget for each product for each of the first three quarters of the year. Production budget for deluxes: Berring Company Production Budget for Deluxes First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 04340f017011fce_1 fill in the blank 04340f017011fce_2 fill in the blank 04340f017011fce_3 fill in the blank 04340f017011fce_5 fill in the blank 04340f017011fce_6 fill in the blank 04340f017011fce_7 Total needed fill in the blank 04340f017011fce_8 fill in the blank 04340f017011fce_9 fill in the blank 04340f017011fce_10 fill in the blank 04340f017011fce_12 fill in the blank 04340f017011fce_13 fill in the blank 04340f017011fce_14 Units produced fill in the blank 04340f017011fce_15 fill in the blank 04340f017011fce_16 fill in the blank 04340f017011fce_17 Production budget for standards: Berring Company Production Budget for Standards First Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 19c497fb601b00a_1 fill in the blank 19c497fb601b00a_2 fill in the blank 19c497fb601b00a_3 fill in the blank 19c497fb601b00a_5 fill in the blank 19c497fb601b00a_6 fill in the blank 19c497fb601b00a_7 Total needed fill in the blank 19c497fb601b00a_8 fill in the blank 19c497fb601b00a_9 fill in the blank 19c497fb601b00a_10 fill in the blank 19c497fb601b00a_12 fill in the blank 19c497fb601b00a_13 fill in the blank 19c497fb601b00a_14 Units produced fill in the blank 19c497fb601b00a_15 fill in the blank 19c497fb601b00a_16 fill in the blank 19c497fb601b00a_17

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Sales and Production Budgets

Berring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below.

	Deluxe	Standard
First quarter	11,000	90,000
Second quarter	14,500	88,600
Third quarter	16,800	92,000
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 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for deluxes and 10 percent of next quarter’s sales for standards.

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.

Berring Company
Sales Budget
For the Year Ended December 31
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Deluxe:
Units	fill in the blank da2f9afb206c055_1	fill in the blank da2f9afb206c055_2	fill in the blank da2f9afb206c055_3	fill in the blank da2f9afb206c055_4	fill in the blank da2f9afb206c055_5
Unit price	$fill in the blank da2f9afb206c055_6	$fill in the blank da2f9afb206c055_7	$fill in the blank da2f9afb206c055_8	$fill in the blank da2f9afb206c055_9	$fill in the blank da2f9afb206c055_10
Sales	$fill in the blank da2f9afb206c055_11	$fill in the blank da2f9afb206c055_12	$fill in the blank da2f9afb206c055_13	$fill in the blank da2f9afb206c055_14	$fill in the blank da2f9afb206c055_15
Standard:
Units	fill in the blank da2f9afb206c055_16	fill in the blank da2f9afb206c055_17	fill in the blank da2f9afb206c055_18	fill in the blank da2f9afb206c055_19	fill in the blank da2f9afb206c055_20
Unit price	$fill in the blank da2f9afb206c055_21	$fill in the blank da2f9afb206c055_22	$fill in the blank da2f9afb206c055_23	$fill in the blank da2f9afb206c055_24	$fill in the blank da2f9afb206c055_25
Sales	$fill in the blank da2f9afb206c055_26	$fill in the blank da2f9afb206c055_27	$fill in the blank da2f9afb206c055_28	$fill in the blank da2f9afb206c055_29	$fill in the blank da2f9afb206c055_30
Total Sales	$fill in the blank da2f9afb206c055_31	$fill in the blank da2f9afb206c055_32	$fill in the blank da2f9afb206c055_33	$fill in the blank da2f9afb206c055_34	$fill in the blank da2f9afb206c055_35

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

Production budget for deluxes:

Berring Company
Production Budget for Deluxes
First Three Quarters of the Year
	Quarter 1	Quarter 2	Quarter 3
Unit sales	fill in the blank 04340f017011fce_1	fill in the blank 04340f017011fce_2	fill in the blank 04340f017011fce_3
	fill in the blank 04340f017011fce_5	fill in the blank 04340f017011fce_6	fill in the blank 04340f017011fce_7
Total needed	fill in the blank 04340f017011fce_8	fill in the blank 04340f017011fce_9	fill in the blank 04340f017011fce_10
	fill in the blank 04340f017011fce_12	fill in the blank 04340f017011fce_13	fill in the blank 04340f017011fce_14
Units produced	fill in the blank 04340f017011fce_15	fill in the blank 04340f017011fce_16	fill in the blank 04340f017011fce_17

Production budget for standards:

Berring Company
Production Budget for Standards
First Three Quarters of the Year
	Quarter 1	Quarter 2	Quarter 3
Unit sales	fill in the blank 19c497fb601b00a_1	fill in the blank 19c497fb601b00a_2	fill in the blank 19c497fb601b00a_3
	fill in the blank 19c497fb601b00a_5	fill in the blank 19c497fb601b00a_6	fill in the blank 19c497fb601b00a_7
Total needed	fill in the blank 19c497fb601b00a_8	fill in the blank 19c497fb601b00a_9	fill in the blank 19c497fb601b00a_10
	fill in the blank 19c497fb601b00a_12	fill in the blank 19c497fb601b00a_13	fill in the blank 19c497fb601b00a_14
Units produced	fill in the blank 19c497fb601b00a_15	fill in the blank 19c497fb601b00a_16	fill in the blank 19c497fb601b00a_17

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.