Vaughn Enterprises is a boutique guitar manufacturer. Thecompany produces both acoustic and electric guitars for rising andestablished professional musicians. Vanessa Aaron, the company’ssales manager, prepared the following sales forecast for 2018. Theforecasted sales prices include a 5% increase in the acousticguitar price and a 10% increase in the electric guitar price, tocover anticipated increases in raw materials prices.

		Sales Price			1stQuarter			2ndQuarter			3rdQuarter			4thQuarter
Acoustic guitar sales		$1,290			200			260			300			310
Electric guitar sales		$2,380			390			340			300			370

Each acoustic guitar requires a maple neck blank, which Vaughnpurchases for $45. On December 31, 2017, Vaughn had 390 neck blanksin inventory. Spoilage during the production process results in astandard quantity of 1.5 necks per acoustic guitar. Because ofrecent delivery problems, Vaughn wants to maintain an endinginventory equal to 50% of the following quarter’s production needs.Since the supplier has assured Vaughn that the delivery issues willbe resolved by the end of December, Vaughn wants only 390 neckblanks in inventory on December 31, 2018. Prepare the purchasesbudget for neck blanks for 2018. (Enter "per guitar"value to 1 decimal place, e.g. 3.1. Round all other answers to 0decimal places, e.g. 153.)

PurchasesBudget
		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
BudgetedproductionBudgeted ending inventoryStandard necks perguitarProduction needsBudgeted purchases (necks)Standard price perneckBeginning inventoryTotal DM required (necks)Budgeted purchasescost
Standard necksper guitarBudgeted purchases (necks)Beginning inventoryProductionneedsStandard price per neckBudgeted ending inventoryBudgetedpurchases costTotal DM required (necks)Budgeted production
BudgetedproductionBeginning inventoryTotal DM required (necks)Standardprice per neckBudgeted ending inventoryBudgeted purchasescostBudgeted purchases (necks)Standard necks per guitarProductionneeds
Budgetedpurchases costStandard price per neckTotal DM required(necks)Beginning inventoryProduction needsBudgeted purchases(necks)Standard necks per guitarBudgeted productionBudgeted endinginventory
Standard necksper guitarBudgeted purchases (necks)Beginning inventoryProductionneedsBudgeted purchases costBudgeted productionBudgeted endinginventoryStandard price per neckTotal DM required (necks)
Standard priceper neckBudgeted ending inventoryTotal DM required (necks)Standardnecks per guitarBudgeted purchases costBudgetedproductionProduction needsBeginning inventoryBudgeted purchases(necks)
Total DMrequired (necks)Standard necks per guitarBudgeted purchases(necks)Budgeted productionBudgeted ending inventoryBudgetedpurchases costBeginning inventoryProduction needsStandard price perneck
Budgeted endinginventoryBudgeted purchases (necks)Production needsStandard priceper neckStandard necks per guitarTotal DM required (necks)BeginninginventoryBudgeted purchases costBudgeted production		$		$		$		$		$
BeginninginventoryTotal DM required (necks)Production needsBudgetedproductionStandard price per neckBudgeted ending inventoryStandardnecks per guitarBudgeted purchases (necks)Budgeted purchasescost		$