Cohen Sounds produces two automotive subwoofers: S12L7 and S12L5. Projected sales (number of speakers) for the coming five quarters are as follows:

The vice-president of sales believes that the projected sales are realistic and can be achieved by the company.
Cohen Sounds needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for the first quarter of 2014 was 340 speakers. The company's policy is to have 20 percent of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 170 speakers. The company's policy is to have 30 percent of the next quarter's sales of S12L5 in ending inventory.
Required:
Prepare a production budget for each quarter for 2014 and for the year in total.

Transcribed Image Text:

S12L7 S12L5 1,300 1,400 5,300 3,900 1,200 First quarter, 2014 Second quarter, 2014 Third quarter, 2014 Fourth quarter, 2014 First quarter, 2015 800 2,200 5,600 4,600 900