Exercises: Set B
EXERCISES: SET B
Prepare quarterly production
Prepare a direct materials
Prepare a sales budget for
Prepare a sales budget for four
Welton Electronics Inc. produces and sells two models of calculators, XQ-103 and
XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition
Welton faces, management budgets sales semiannually. Its projections for the first 2 quarters of
2008 are as follows.
No changes in selling prices are anticipated.
Prepare a sales budget for the 2 quarters ending June 30, 2008. List the products and show
for each quarter and for the 6 months, units, selling price, and total sales by product and in
Agler and Poole, CPAs, are preparing their service revenue (sales) budget for the
coming year (2008).The practice is divided into three departments: auditing, tax, and consulting.
Billable hours for each department, by quarter, are provided below.
Average hourly billing rates are: auditing $70, tax $80, and consulting $90.
Prepare the service revenue (sales) budget for 2008 by listing the departments and showing for
each quarter and the year in total, billable hours, billable rate, and total revenue.
Samson Company produces and sells automobile batteries, the heavy-duty HD-240.
The 2008 sales budget is as follows.
The January 1, 2008, inventory of HD-240 is 1,500 units. Management desires an ending inven-
tory each quarter equal to 30% of the next quarter’s sales. Sales in the first quarter of 2009 are
expected to be 20% higher than sales in the same quarter in 2008.
Prepare quarterly production budgets for each quarter and in total for 2008.
Berroa Industries has adopted the following production budget for the first 4 months
Each unit requires 4 pounds of raw materials costing $2 per pound. On December 31, 2008,
the ending raw materials inventory was 10,000 pounds. Management wants to have a raw
materials inventory at the end of the month equal to 25% of next month’s production
Prepare a direct materials purchases budget by month for the first quarter.