1. Bob's Donuts produces donuts for resale at grocery stores throughout Texas. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year. Monthly sales in units for the first quarter are as follows (1 unit = I batch):

JANUARY:	18,000 units
FEBRUARY:	20,000 units
MARCH:	24,000 units

Each unit is expected to sell for $15.00. Management prefers to maintain ending finished goods inventory equal to 10% (percent) of next month's sales. Assume finished goods inventory at the end of March is estimated to be 2,400 units. Beginning inventory for January is the ending inventory for December (10% of January sales).

Required:

a. Prepare a quarterly sales budget for Bob's Donuts.

b. Prepare a quarterly production budget for Bob's Donuts.

c. Prepare a materials budget - pounds of material and cost. Each unit contains 2.0 pounds of materials. The price is $1.50 per pound. Ending inventory should equal 10% of the next months need. The desired ending inventory for March is $4,600. January beginning inventory equals 10% of January materials need (December ending).

2. Schwab Industries produces solar panels. Assume all sales are made on credit. The company expects to collect 60 percent of sales in the month of sale and 40 percent the month following the sale. Accounts receivable at the end of last year totaled S6 million, all of which will be collected in the first month of the coming year. Schwab's sales budget shows the following projected sales revenues:

January	$17,000,000
February	$22,000,000
March	$24,500,000

Required:

Prepare Schwab's budget for cash collections from sales for the quarter.