Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475,...

 

Transcribed Image Text:

Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 1,080 1,755 Second quarter, 20Y1 2,970 1,890 Third quarter, 20Y1 7,560 7,155 Fourth quarter, 20Y1 6,210 5,265 First quarter, 20Y2 1,215 1,620 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to outside manufacturers). Beginning inventory of S12L7 for the first quarter of 20Y1 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12L5 in ending inventory. Required: Prepare a production budget for each quarter for 20Y1 and for the year in total. Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12L5 First quarter, 20Y1 1,080 1,755 Second quarter, 20Y1 2,970 1,890 Third quarter, 20Y1 7,560 7,155 Fourth quarter, 20Y1 6,210 5,265 First quarter, 20Y2 1,215 1,620 The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to outside manufacturers). Beginning inventory of S12L7 for the first quarter of 20Y1 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12L5 in ending inventory. Required: Prepare a production budget for each quarter for 20Y1 and for the year in total.

Answer rating: 100% (QA)

Here are the production budgets for each quarter of 20Y1 and the total for the year Quarter 1 S12L7 ... View the full answer