CG 2071 Class Examples -Chapter 9 Master Bud xample #1 PRODUCTION BUDGET Clapton Company's sales budget shows the followin 31, 2017: Quarters First (Jan -March) Second (April - June) Third (July Sept) Fourth (Oct - Dec) Total Guitars 30,000 40,000 22,500 27 500 120,000 First Quarter 2018 34,500 Inventory at December 31, 2016 was budgeted at 60 inventory at the end of each quarter is to equal 20 p sales. How much should the production budget show in 2017? Example #2 DIRECT MATERIALS PURCHASES BUD ACG 2071 Class Examples -Chapter 9 Master Budgeting Example #1 PRODUCTION BUDGET Clapton Company's sales budget shows the following projectio 31, 2017: Guitars 30,000 40,000 22,500 27.500 120,000 Quarters First (Jan -March) Second (April - June) Third (July - Sept) Fourth (Oct- Dec) Total First Quarter 2018 34.500 Inventory at December 31, 2016 was budgeted at 6000 guitar inventory at the end of each quarter is to equal 20 percent of sales. How much should the production budget show for units in 2017? Example #2 DIRECT MATERIALS PURCHASES BUDGET Cobb Co. budgets sales of Product A at 200,000 units for Octo Product A requires two gallons of Material Z. Actual beginning inventories for the month are as follows