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 12,000 90,000 Second quarter 14,200 88,200 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: 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. Berring CompanySales BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Deluxe: Units fill in the blank b480d9056011fce_1 fill in the blank b480d9056011fce_2 fill in the blank b480d9056011fce_3 fill in the blank b480d9056011fce_4 fill in the blank b480d9056011fce_5 Unit price $fill in the blank b480d9056011fce_6 $fill in the blank b480d9056011fce_7 $fill in the blank b480d9056011fce_8 $fill in the blank b480d9056011fce_9 $fill in the blank b480d9056011fce_10 Sales $fill in the blank b480d9056011fce_11 $fill in the blank b480d9056011fce_12 $fill in the blank b480d9056011fce_13 $fill in the blank b480d9056011fce_14 $fill in the blank b480d9056011fce_15 Standard: Units fill in the blank b480d9056011fce_16 fill in the blank b480d9056011fce_17 fill in the blank b480d9056011fce_18 fill in the blank b480d9056011fce_19 fill in the blank b480d9056011fce_20 Unit price $fill in the blank b480d9056011fce_21 $fill in the blank b480d9056011fce_22 $fill in the blank b480d9056011fce_23 $fill in the blank b480d9056011fce_24 $fill in the blank b480d9056011fce_25 Sales $fill in the blank b480d9056011fce_26 $fill in the blank b480d9056011fce_27 $fill in the blank b480d9056011fce_28 $fill in the blank b480d9056011fce_29 $fill in the blank b480d9056011fce_30 Total Sales $fill in the blank b480d9056011fce_31 $fill in the blank b480d9056011fce_32 $fill in the blank b480d9056011fce_33 $fill in the blank b480d9056011fce_34 $fill in the blank b480d9056011fce_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 deluxes: Berring CompanyProduction Budget for DeluxesFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 845440ffefbbfad_1 fill in the blank 845440ffefbbfad_2 fill in the blank 845440ffefbbfad_3 - Select - - Select - - Select - Total needed fill in the blank 845440ffefbbfad_8 fill in the blank 845440ffefbbfad_9 fill in the blank 845440ffefbbfad_10 - Select - - Select - - Select - Units produced fill in the blank 845440ffefbbfad_15 fill in the blank 845440ffefbbfad_16 fill in the blank 845440ffefbbfad_17 Question Content Area
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 12,000 90,000 Second quarter 14,200 88,200 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: 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. Berring CompanySales BudgetFor the Year Ended December 31 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Deluxe: Units fill in the blank b480d9056011fce_1 fill in the blank b480d9056011fce_2 fill in the blank b480d9056011fce_3 fill in the blank b480d9056011fce_4 fill in the blank b480d9056011fce_5 Unit price $fill in the blank b480d9056011fce_6 $fill in the blank b480d9056011fce_7 $fill in the blank b480d9056011fce_8 $fill in the blank b480d9056011fce_9 $fill in the blank b480d9056011fce_10 Sales $fill in the blank b480d9056011fce_11 $fill in the blank b480d9056011fce_12 $fill in the blank b480d9056011fce_13 $fill in the blank b480d9056011fce_14 $fill in the blank b480d9056011fce_15 Standard: Units fill in the blank b480d9056011fce_16 fill in the blank b480d9056011fce_17 fill in the blank b480d9056011fce_18 fill in the blank b480d9056011fce_19 fill in the blank b480d9056011fce_20 Unit price $fill in the blank b480d9056011fce_21 $fill in the blank b480d9056011fce_22 $fill in the blank b480d9056011fce_23 $fill in the blank b480d9056011fce_24 $fill in the blank b480d9056011fce_25 Sales $fill in the blank b480d9056011fce_26 $fill in the blank b480d9056011fce_27 $fill in the blank b480d9056011fce_28 $fill in the blank b480d9056011fce_29 $fill in the blank b480d9056011fce_30 Total Sales $fill in the blank b480d9056011fce_31 $fill in the blank b480d9056011fce_32 $fill in the blank b480d9056011fce_33 $fill in the blank b480d9056011fce_34 $fill in the blank b480d9056011fce_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 deluxes: Berring CompanyProduction Budget for DeluxesFirst Three Quarters of the Year Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 845440ffefbbfad_1 fill in the blank 845440ffefbbfad_2 fill in the blank 845440ffefbbfad_3 - Select - - Select - - Select - Total needed fill in the blank 845440ffefbbfad_8 fill in the blank 845440ffefbbfad_9 fill in the blank 845440ffefbbfad_10 - Select - - Select - - Select - Units produced fill in the blank 845440ffefbbfad_15 fill in the blank 845440ffefbbfad_16 fill in the blank 845440ffefbbfad_17 Question Content Area
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
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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 12,000 90,000 Second quarter 14,200 88,200 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:
Question Content Area
Berring CompanySales BudgetFor the Year Ended December 311. 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 Deluxe: Units fill in the blank b480d9056011fce_1 fill in the blank b480d9056011fce_2 fill in the blank b480d9056011fce_3 fill in the blank b480d9056011fce_4 fill in the blank b480d9056011fce_5 Unit price $fill in the blank b480d9056011fce_6 $fill in the blank b480d9056011fce_7 $fill in the blank b480d9056011fce_8 $fill in the blank b480d9056011fce_9 $fill in the blank b480d9056011fce_10 Sales $fill in the blank b480d9056011fce_11 $fill in the blank b480d9056011fce_12 $fill in the blank b480d9056011fce_13 $fill in the blank b480d9056011fce_14 $fill in the blank b480d9056011fce_15 Standard: Units fill in the blank b480d9056011fce_16 fill in the blank b480d9056011fce_17 fill in the blank b480d9056011fce_18 fill in the blank b480d9056011fce_19 fill in the blank b480d9056011fce_20 Unit price $fill in the blank b480d9056011fce_21 $fill in the blank b480d9056011fce_22 $fill in the blank b480d9056011fce_23 $fill in the blank b480d9056011fce_24 $fill in the blank b480d9056011fce_25 Sales $fill in the blank b480d9056011fce_26 $fill in the blank b480d9056011fce_27 $fill in the blank b480d9056011fce_28 $fill in the blank b480d9056011fce_29 $fill in the blank b480d9056011fce_30 Total Sales $fill in the blank b480d9056011fce_31 $fill in the blank b480d9056011fce_32 $fill in the blank b480d9056011fce_33 $fill in the blank b480d9056011fce_34 $fill in the blank b480d9056011fce_35 Question Content Area
Berring CompanyProduction Budget for DeluxesFirst Three Quarters of the Year2. Prepare a separate production budget for each product for each of the first three quarters of the year.
Production budget for deluxes:
Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 845440ffefbbfad_1 fill in the blank 845440ffefbbfad_2 fill in the blank 845440ffefbbfad_3 - Select - - Select - - Select - Total needed fill in the blank 845440ffefbbfad_8 fill in the blank 845440ffefbbfad_9 fill in the blank 845440ffefbbfad_10 - Select - - Select - - Select - Units produced fill in the blank 845440ffefbbfad_15 fill in the blank 845440ffefbbfad_16 fill in the blank 845440ffefbbfad_17 Question Content Area
Berring CompanyProduction Budget for StandardsFirst Three Quarters of the YearProduction budget for standards:
Quarter 1 Quarter 2 Quarter 3 Unit sales fill in the blank 373913002049fb6_1 fill in the blank 373913002049fb6_2 fill in the blank 373913002049fb6_3 - Select - - Select - - Select - Total needed fill in the blank 373913002049fb6_8 fill in the blank 373913002049fb6_9 fill in the blank 373913002049fb6_10 - Select - - Select - - Select - Units produced fill in the blank 373913002049fb6_15 fill in the blank 373913002049fb6_16 fill in the blank 373913002049fb6_17
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