Stillwater Designs 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.
Stillwater Designs 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 2010 was 500 boxes. The company's policy is to have 30 percent of the next quarter's sales of S12L7 in ending inventory. Beginning inventory of S12L5 was 200 boxes. The company's policy is to have 40 percent of the next quarter's sales of S12L5 in ending inventory.

Required:
Prepare a production budget for each quarter for 2010 and for the year intotal.

Transcribed Image Text:

First quarter, 2010 Second quarter, 2010 Third quarter, 2010 Fourth quarter, 2010 First quarter, 2011 S12L7 S12L5 1,600 2,100 8,350 4,200 4,300 2,400 1,650 500 1,000 750