Clicker Question Preparation Guide Ch 9 Clicker questions will be asked in class based on your completion of this preparation guide Example in class question Question 1 What are the Total Sales expected for the first quarter You will not have time to complete this guide in class 1 Leaf Industries is preparing its master budget for 2018 Relevant data pertaining to its sales budget are as follows Sales for the year are expected to total 8 500 000 units Quarterly sales are 25 30 15 and 30 respectively The sales price is expected to be 3 00 per unit for the first quarter and then be increased to 3 20 per unit in the second quarter 1st Quarter Unit Sales Unit Selling Price Total Sales 2nd Quarter 3 00 3 20 3rd Quarter 3 20 4th Quarter Total for Yr 8 500 000 3 20 2 Stone Company is preparing its direct labor budget for 2018 from the following production budget based on a calendar year Quarter 1 2 3 4 Units 70 000 40 000 35 000 65 000 Each unit requires 4 hours of direct labor The union contract provides for a 10 increase in wage rate to 22 per hour on October 1 Units produced Direct Labor Time per unit Total required DL Hours DL cost per hour Total Direct labor Cost 1 70 000 HINT original Wage 1 10 new wage 2 40 000 3 35 000 4 65 000 22 Total 210 000 3 Garver Industries has budgeted the following unit sales 2018 January February March April May Units 12 000 8 500 10 000 11 000 15 000 The finished goods units on hand on December 31 2017 was 3 000 units Each unit requires 3 pounds of raw materials that are estimated to cost an average of 5 per pound It is the company s policy to maintain a finished goods inventory at the end of each month equal to 25 of next month s anticipated sales They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30 of the pounds needed for the following month s production There were 10 013 pounds of raw materials on hand at December 31 2017 Instructions For January and February 2018 prepare 1 a production budget and 2 a direct materials budget Please round any decimals up to the next dollar or unit
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