Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model...

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Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,500 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 107,000 146,000 213,000 114,000 61,500 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Add: Desired ending inventory Total needs Less: Beginning inventory Required production April May June July 107,000 146,000 213,000 114,000 29,600 36,300 26,400 21,150 136,600 182,300 239,400 135,150 28,500 29,600 36,300 26,400 108,100 152,700 203,100 108,750 2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. Second April May June Quarter Required production (units) 108,100 152,700 203,100 108,750 XL 12 components needed per unit 4 4 4 4 Production needs 432,400 610,800 812,400 435,000 Add: Desired ending inventory Total XL 12 needs 432,400 610,800 812,400 435,000 Less: Beginning inventory Material XL 12 purchases 432,400 610,800 812,400 435,000 Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 15,000 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,500 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 107,000 146,000 213,000 114,000 61,500 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. Budgeted sales (units) Add: Desired ending inventory Total needs Less: Beginning inventory Required production April May June July 107,000 146,000 213,000 114,000 29,600 36,300 26,400 21,150 136,600 182,300 239,400 135,150 28,500 29,600 36,300 26,400 108,100 152,700 203,100 108,750 2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. Second April May June Quarter Required production (units) 108,100 152,700 203,100 108,750 XL 12 components needed per unit 4 4 4 4 Production needs 432,400 610,800 812,400 435,000 Add: Desired ending inventory Total XL 12 needs 432,400 610,800 812,400 435,000 Less: Beginning inventory Material XL 12 purchases 432,400 610,800 812,400 435,000