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 2nd Quarter 3rd Quarter 4th Quarter Total for Yr Unit Sales 8,500,000 Unit Selling Price $3.00 $3.20 $3.20 $3.20 Total Sales 2. Stone Company is preparing its direct labor budget for 2018 from the following production budget based on a calendar year: Quarter Units 1 70,000 2 40,000 3 35,000 4 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. 1 2 3 4 Total Units produced 70,000 40,000 35,000 65,000 210,000 Direct Labor Time per unit Total required DL Hours DL cost per hour $22 Total Direct labor Cost HINT: original Wage * 1.10 = new wage3. Garver Industries has budgeted the following unit sales: 2018 Units January 12,000 February 8,500 March 10,000 April 11,000 May 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
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