Chapter 8 Budgeting for Planning and Control sells for $40). OBJECTIVE 2 oming four quarters Exercise 8.16 Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe sells to and the standard sells for S10. Proiected sales of the two models for the coming four are given below. Standard Deluxe 90.000 12.000 First quarter 88.400 14,300 Second quarter 92,000 Third quarter 16.600 91,600 20,000 Fourth quarter The president of the company believes that the projected sales are realistic and can achieved by the company. In the factory, the production supervisor hasceived the pro sales figures and gathered information needed to compile production gets. He found the 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter's sales for deluxes and 10 percent of next quarter's sales for standards. Required: 1. Prepare a sales budget for each quarter and for the year in total. Show sales by product and in total for each time period. 2. What factors might Berring Company have considered in preparing the sales budget? 3. Prepare a separate production budget for each product for each of the first three quarters of the year