Delta Manufacturing has budgeted the following unit sales: 2019 April May June July Units 25,000 40,000 60,000 45,000 Of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit. Prepare separate sales budgets for each division and for the company in total for the second quarter of 2019.

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

The following data were obtained from the financial records of Sonicbrush, Inc., for March: Sales are expected to increase each month by 15%. Prepare a budgeted income statement.

Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.

The data shown were obtained from the financial records of Italian Exports, Inc., for March: Sales are expected to increase each month by 10%. Prepare a budgeted income statement.

Delta Manufacturing has budgeted the following unit sales: 2019 Units April 25,000 May 40,000 June 60,000 July 45,000 Of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit. Instructions: Prepare separate sales budgets for each division and for the company in total for the second quarter of 2020. What are the total consolidated sales dollars for quarter? Assune a calendar fiscal year end.

Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $25,100 in the first quarter, and $5,100 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $40,100 in each quarter.Prepare the selling and administrative expense budget by quarters and in total for 2020. ELBERT COMPANYSelling and Administrative Expense Budget                                                           For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020   Quarter     1   2   3   4   Year                                                            Direct LaborDirect MaterialsFixed ExpensesProduction UnitsSalesTotal Selling and Administrative ExpensesVariable Expenses $    $    $    $    $                                                             Direct LaborDirect MaterialsFixed ExpensesProduction…

Samano Industries has adopted the following production budget for the four quarters of 2020: Quarter 1 Quarter 2 Quarter 3 Units 6,300 8,100 9,100 Quarter 4 10,100 Each unit requires 3 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,900 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,100 units.Prepare a direct materials purchases budget by quarters for 2020.2.Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Raw materials unit cost Raw materials units used Direct labor payroll Actual Standard $2.25 $2.10 10,600 10,000 $ 1,20,960 $ 1,20,000 Direct labor hours Manufacturing overhead Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted…

DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month   Units   Month   Units January   10,430   March   5,130 February   8,210   April   4,470 Each unit requires 3 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw materials inventory was 6,258 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month’s production requirements.Prepare a direct materials purchases budget by month for the first quarter. DEWITT INDUSTRIESDirect Materials Purchases Budgetchoose the accounting period                                                           For the Quarter Ending March 31, 2020March 31, 2020For the Month Ending March 31, 2020     January   February   March   select an opening materials purchases budget item                                                           Beginning Direct Materials (Pounds)Cost Per PoundDesired…

In September 2019, the budget committee of Jason Company assembles the following data: 1. 2 Expected Sales 4. October November December Cost of goods sold is expected to be 60% of sales. 3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold. The beginning inventory at October 1 will be the desired amount. $1,800,000 1,700,000 V 1,600,000 Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule. V M JASON COMPANY Budgeted Income Statement For the Month Ended October 31, 2019 $ $