5 Question Content AreaSales and Production BudgetsBerring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below. DeluxeStandardFirst quarter12,000 90,000 Second quarter14,200 88,600 Third quarter16,800 92,000 Fourth quarter20,000 91,800 The president of the company believes that the projected sales are realistic and can be achieved by the company. In the factory, the production supervisor has received the projected sales figures and gathered information needed to compile production budgets. He found that 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for deluxes and 10 percent of next quarter’s sales for standards.Required:Question Content Area1. Prepare a sales budget for each quarter and for the year in total. Show sales by product and in total for each time period.Berring CompanySales BudgetFor the Year Ended December 31 Quarter 1Quarter 2Quarter 3Quarter 4YearDeluxe: Unitsfill in the blank 67173bff4fcf007_1fill in the blank 67173bff4fcf007_2fill in the blank 67173bff4fcf007_3fill in the blank 67173bff4fcf007_4fill in the blank 67173bff4fcf007_5Unit price$fill in the blank 67173bff4fcf007_6$fill in the blank 67173bff4fcf007_7$fill in the blank 67173bff4fcf007_8$fill in the blank 67173bff4fcf007_9$fill in the blank 67173bff4fcf007_10Sales$fill in the blank 67173bff4fcf007_11$fill in the blank 67173bff4fcf007_12$fill in the blank 67173bff4fcf007_13$fill in the blank 67173bff4fcf007_14$fill in the blank 67173bff4fcf007_15Standard: Unitsfill in the blank 67173bff4fcf007_16fill in the blank 67173bff4fcf007_17fill in the blank 67173bff4fcf007_18fill in the blank 67173bff4fcf007_19fill in the blank 67173bff4fcf007_20Unit price$fill in the blank 67173bff4fcf007_21$fill in the blank 67173bff4fcf007_22$fill in the blank 67173bff4fcf007_23$fill in the blank 67173bff4fcf007_24$fill in the blank 67173bff4fcf007_25Sales$fill in the blank 67173bff4fcf007_26$fill in the blank 67173bff4fcf007_27$fill in the blank 67173bff4fcf007_28$fill in the blank 67173bff4fcf007_29$fill in the blank 67173bff4fcf007_30Total Sales$fill in the blank 67173bff4fcf007_31$fill in the blank 67173bff4fcf007_32$fill in the blank 67173bff4fcf007_33$fill in the blank 67173bff4fcf007_34$fill in the blank 67173bff4fcf007_35 Question Content Area2. Prepare a separate production budget for each product for each of the first three quarters of the year.Production budget for deluxes:Berring CompanyProduction Budget for DeluxesFirst Three Quarters of the Year Quarter 1Quarter 2Quarter 3Unit salesfill in the blank 3608c2f64fd5fb8_1fill in the blank 3608c2f64fd5fb8_2fill in the blank 3608c2f64fd5fb8_3 - Select -- Select -- Select -Total neededfill in the blank 3608c2f64fd5fb8_8fill in the blank 3608c2f64fd5fb8_9fill in the blank 3608c2f64fd5fb8_10 - Select -- Select -- Select -Units producedfill in the blank 3608c2f64fd5fb8_15fill in the blank 3608c2f64fd5fb8_16fill in the blank 3608c2f64fd5fb8_17 Question Content AreaProduction budget for standards:Berring CompanyProduction Budget for StandardsFirst Three Quarters of the Year Quarter 1Quarter 2Quarter 3Unit salesfill in the blank 9347eeffe04af98_1fill in the blank 9347eeffe04af98_2fill in the blank 9347eeffe04af98_3 - Select -- Select -- Select -Total neededfill in the blank 9347eeffe04af98_8fill in the blank 9347eeffe04af98_9fill in the blank 9347eeffe04af98_10 - Select -- Select -- Select -Units producedfill in the blank 9347eeffe04af98_15fill in the blank 9347eeffe04af98_16fill in the blank 9347eeffe04af98_17 Sales Forecast and BudgetAudio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in hard drive; they can be put into fannypacks for use while working out. It is now early January, and Audio-2-Go's budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows:ModelNumber SoldPriceRevenueA-125,000$ 60$1,500,000A-239,0002,925,00075110A-35,720,00052,00014,000A-41502,100,000A-53,000250750,000$12,995,000In looking over the last year's sales figures, Audio-2-Go's sales budgeting team recalled the following:a. Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 20 percent. The number of units of Model A-1 to be sold wasforecast to be 50 percent of last year's units.b. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors' audio players, butthe price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales priceremains unchanged.c. Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $175; unit sales are estimated to equal4,000 per month.d. A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 10 percent to maintain unit sales at last year's level.e. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.Required:Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year.Audio-2-Go, Inc.Sales BudgetFor This YearModelPriceTotal SalesA-1A-2A-3A-4A-5A-6TotalUnits$ Purchases BudgetTiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins forthe first six months of the year is presented below.Unit SalesDollar SalesJanuary200$1,800February1901,710March2101,890April2201,980May2402,160June2302,070The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales.On January 1, 24 bottles of vitamins were in inventory.Required:1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.Tiger Drug StoreMerchandise Purchases BudgetJanuary February March April MayUnit salesDesired EITotal neededLess: BIUnit purchases2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?JanuaryFebruaryMarchAprilMay00000

Question

5 Question Content AreaSales and Production BudgetsBerring Company produces two products: the deluxe and the standard. The deluxe sells for $40, and the standard sells for $10. Projected sales of the two models for the coming four quarters are given below. DeluxeStandardFirst quarter12,000    90,000    Second quarter14,200    88,600    Third quarter16,800    92,000    Fourth quarter20,000    91,800    The president of the company believes that the projected sales are realistic and can be achieved by the company. In the factory, the production supervisor has received the projected sales figures and gathered information needed to compile production budgets. He found that 1,300 deluxes and 1,170 standards were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for deluxes and 10 percent of next quarter’s sales for standards.Required:Question Content Area1. Prepare a sales budget for each quarter and for the year in total. Show sales by product and in total for each time period.Berring CompanySales BudgetFor the Year Ended December 31 Quarter 1Quarter 2Quarter 3Quarter 4YearDeluxe:     Unitsfill in the blank 67173bff4fcf007_1fill in the blank 67173bff4fcf007_2fill in the blank 67173bff4fcf007_3fill in the blank 67173bff4fcf007_4fill in the blank 67173bff4fcf007_5Unit price$fill in the blank 67173bff4fcf007_6$fill in the blank 67173bff4fcf007_7$fill in the blank 67173bff4fcf007_8$fill in the blank 67173bff4fcf007_9$fill in the blank 67173bff4fcf007_10Sales$fill in the blank 67173bff4fcf007_11$fill in the blank 67173bff4fcf007_12$fill in the blank 67173bff4fcf007_13$fill in the blank 67173bff4fcf007_14$fill in the blank 67173bff4fcf007_15Standard:     Unitsfill in the blank 67173bff4fcf007_16fill in the blank 67173bff4fcf007_17fill in the blank 67173bff4fcf007_18fill in the blank 67173bff4fcf007_19fill in the blank 67173bff4fcf007_20Unit price$fill in the blank 67173bff4fcf007_21$fill in the blank 67173bff4fcf007_22$fill in the blank 67173bff4fcf007_23$fill in the blank 67173bff4fcf007_24$fill in the blank 67173bff4fcf007_25Sales$fill in the blank 67173bff4fcf007_26$fill in the blank 67173bff4fcf007_27$fill in the blank 67173bff4fcf007_28$fill in the blank 67173bff4fcf007_29$fill in the blank 67173bff4fcf007_30Total Sales$fill in the blank 67173bff4fcf007_31$fill in the blank 67173bff4fcf007_32$fill in the blank 67173bff4fcf007_33$fill in the blank 67173bff4fcf007_34$fill in the blank 67173bff4fcf007_35 Question Content Area2. Prepare a separate production budget for each product for each of the first three quarters of the year.Production budget for deluxes:Berring CompanyProduction Budget for DeluxesFirst Three Quarters of the Year Quarter 1Quarter 2Quarter 3Unit salesfill in the blank 3608c2f64fd5fb8_1fill in the blank 3608c2f64fd5fb8_2fill in the blank 3608c2f64fd5fb8_3 - Select -- Select -- Select -Total neededfill in the blank 3608c2f64fd5fb8_8fill in the blank 3608c2f64fd5fb8_9fill in the blank 3608c2f64fd5fb8_10 - Select -- Select -- Select -Units producedfill in the blank 3608c2f64fd5fb8_15fill in the blank 3608c2f64fd5fb8_16fill in the blank 3608c2f64fd5fb8_17 Question Content AreaProduction budget for standards:Berring CompanyProduction Budget for StandardsFirst Three Quarters of the Year Quarter 1Quarter 2Quarter 3Unit salesfill in the blank 9347eeffe04af98_1fill in the blank 9347eeffe04af98_2fill in the blank 9347eeffe04af98_3 - Select -- Select -- Select -Total neededfill in the blank 9347eeffe04af98_8fill in the blank 9347eeffe04af98_9fill in the blank 9347eeffe04af98_10 - Select -- Select -- Select -Units producedfill in the blank 9347eeffe04af98_15fill in the blank 9347eeffe04af98_16fill in the blank 9347eeffe04af98_17 Sales Forecast and BudgetAudio-2-Go, Inc., manufactures MP3 players. Models A-1, A-2, and A-3 are small and light. They are attached to armbands and use flash memory. Models A-4 and A-5 are somewhat larger and use a built-in hard drive; they can be put into fannypacks for use while working out. It is now early January, and Audio-2-Go's budgeting team is finalizing the sales budget for this year. Sales in units and dollars for last year were as follows:ModelNumber SoldPriceRevenueA-125,000$ 60$1,500,000A-239,0002,925,00075110A-35,720,00052,00014,000A-41502,100,000A-53,000250750,000$12,995,000In looking over the last year's sales figures, Audio-2-Go's sales budgeting team recalled the following:a. Model A-1 costs were rising faster than the price could rise. Preparatory to phasing out this model, Audio-2-Go, Inc., planned to slash advertising for this model and raise its price by 20 percent. The number of units of Model A-1 to be sold wasforecast to be 50 percent of last year's units.b. Model A-5 was introduced on November 1 of last year. It contains a built-in 20 GB hard drive and can be synchronized with several popular music software programs. Audio-2-Go brought out this model to match competitors' audio players, butthe price is so much higher than other Audio-2-Go products, that sales have been disappointing. The company plans to discontinue this model on June 30 of this year, and thinks that monthly sales will remain at last year's level if the sales priceremains unchanged.c. Audio-2-Go plans to introduce Model A-6 on July 1 of this year. It will be a high-end player that will be lighter and more versatile than Model A-5 (which it will replace). The target price for this model is $175; unit sales are estimated to equal4,000 per month.d. A competitor has announced plans to introduce an improved version of Model A-3. Audio-2-Go believes that the Model A-3 price must be cut 10 percent to maintain unit sales at last year's level.e. It was assumed that unit sales of all other models would increase by 10 percent, prices remaining constant.Required:Prepare a sales forecast by product and in total for Audio-2-Go, Inc., for this year.Audio-2-Go, Inc.Sales BudgetFor This YearModelPriceTotal SalesA-1A-2A-3A-4A-5A-6TotalUnits$ Purchases BudgetTiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vitamins. The sales budget for vitamins forthe first six months of the year is presented below.Unit SalesDollar SalesJanuary200$1,800February1901,710March2101,890April2201,980May2402,160June2302,070The owner of Tiger Drug believes that ending inventories should be sufficient to cover 10 percent of the next month's projected sales.On January 1, 24 bottles of vitamins were in inventory.Required:1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as you can.Tiger Drug StoreMerchandise Purchases BudgetJanuary February March April MayUnit salesDesired EITotal neededLess: BIUnit purchases2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for each month of your purchases budget?JanuaryFebruaryMarchAprilMay00000

Accepted Answer

“Since you have asked multiple question, we will solve the first question for you. If you want any…

	Deluxe	Standard
First quarter	12,000	90,000
Second quarter	14,200	88,600
Third quarter	16,800	92,000
Fourth quarter	20,000	91,800

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Deluxe:
Units	fill in the blank 67173bff4fcf007_1	fill in the blank 67173bff4fcf007_2	fill in the blank 67173bff4fcf007_3	fill in the blank 67173bff4fcf007_4	fill in the blank 67173bff4fcf007_5
Unit price	$fill in the blank 67173bff4fcf007_6	$fill in the blank 67173bff4fcf007_7	$fill in the blank 67173bff4fcf007_8	$fill in the blank 67173bff4fcf007_9	$fill in the blank 67173bff4fcf007_10
Sales	$fill in the blank 67173bff4fcf007_11	$fill in the blank 67173bff4fcf007_12	$fill in the blank 67173bff4fcf007_13	$fill in the blank 67173bff4fcf007_14	$fill in the blank 67173bff4fcf007_15
Standard:
Units	fill in the blank 67173bff4fcf007_16	fill in the blank 67173bff4fcf007_17	fill in the blank 67173bff4fcf007_18	fill in the blank 67173bff4fcf007_19	fill in the blank 67173bff4fcf007_20
Unit price	$fill in the blank 67173bff4fcf007_21	$fill in the blank 67173bff4fcf007_22	$fill in the blank 67173bff4fcf007_23	$fill in the blank 67173bff4fcf007_24	$fill in the blank 67173bff4fcf007_25
Sales	$fill in the blank 67173bff4fcf007_26	$fill in the blank 67173bff4fcf007_27	$fill in the blank 67173bff4fcf007_28	$fill in the blank 67173bff4fcf007_29	$fill in the blank 67173bff4fcf007_30
Total Sales	$fill in the blank 67173bff4fcf007_31	$fill in the blank 67173bff4fcf007_32	$fill in the blank 67173bff4fcf007_33	$fill in the blank 67173bff4fcf007_34	$fill in the blank 67173bff4fcf007_35