Production Budget Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for $475, and the S12L5 sells for $300. Projected sales (number of speakers) for the coming five quarters are as follows: S12L7 S12LS First quarter, 2011 1,365 840 2,310 5,880 1,470 Second quarter, 2011 Third quarter, 2011 Fourth quarter, 2011 First quarter, 2012 5,565 4,095 4,830 945 1,260 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 2071 was 340 boxes. The company's policy is to have 20% of the next quarter's sales of S12L7 in ending Inventory. Beginning inventory of S12L5 was 170 boxes. The company's policy is to have 30% of the next quarter's sales of S12LS in ending inventory. Required: Prepare a production budget for each quarter for 2011 and for the year in total. Stillwater Designs Production Budget for S12L7 For the Year Ended December 31, 2041 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Sales Desired ending inventory Total needs Less: Beginning inventory Units produced Prepare a production budget for each quarter for 2011 and for the year in total. If required, round your answers to nearest whole value. Stillwater Designs Production Budget for S12L5 For the Year Ended December 31, 20Y1 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Sales Desired ending inventory Total needs Less: Beginning inventory Units produced
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