1. Benet Company has budgeted the following unit sales: 105,000 60,000 75,000 120,000 90,000 4 The finished goods inventory on hand on December 31, 2015 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarters anticipated sales. Prepare a production budget for 2016. 2. Butler Manufacturing manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: 2016 July August 10,000 6,000 9,000 8,000 15,000 10,000 14,000 12,000 25,000 16,000 23,000 20,000 It takes 2 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 309% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 6,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $8 Deluxe Prepare separate direct materials budgets for each product for the third quarter of 2016 3. Garver Industries has budgeted the following unit sales: February March April May Units 0,000 8,000 9,000 11,000 15,000 The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% 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 3096 of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016. Instructions For the first quarter of 2017, prepare (1) a production budget and (2) a direct materials budget. 4. The management of Ocean Industries estimates that credit sales for August, September October, and November will be $540,000, $750,000, $840,000, and $480,000, respectively Experience has shown that collections are made as follows: In month of sale In first month after sale In second month after sale 2596 6096 1096 Instructions Determine the collections from customers in October and November. Show all computations