ch09 - Exercises: Set B 1 EXERCISES: SET B E9-1B Welton...

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Exercises: Set B 1 EXERCISES: SET B Prepare quarterly production budgets. (SO 3) Prepare a direct materials purchases budget. (SO 3) Prepare a sales budget for 2 quarters. (SO 3) Prepare a sales budget for four quarters. (SO 3) E9-1B 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. Instructions 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 total. E9-2B 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. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,200 1,600 2,000 2,400 Tax 3,000 2,400 2,000 2,500 Consulting 1,500 1,500 1,500 1,500 Average hourly billing rates are: auditing $70, tax $80, and consulting $90. Instructions 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. E9-3B Samson Company produces and sells automobile batteries, the heavy-duty HD-240. The 2008 sales budget is as follows. Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 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. Instructions Prepare quarterly production budgets for each quarter and in total for 2008. E9-4B Berroa Industries has adopted the following production budget for the first 4 months of 2009. Month Units Month Units January 10,000 March 5,000 February 8,000 April 4,000 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 requirements. Instructions Prepare a direct materials purchases budget by month for the first quarter. Unit Sales Product Quarter 1 Quarter 2 XQ-103 20,000 25,000 XQ-104 10,000 16,000
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E9-5B On January 1, 2009 the Esteban Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2009. Sales units:
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ch09 - Exercises: Set B 1 EXERCISES: SET B E9-1B Welton...

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