1. Wildhorse Company has 2,440 pounds of raw materials in its December 31, 2021, ending inventory. Required production for January and February of 2022 are 4,880 and 6,100 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next months materials requirements. Prepare the direct materials budget for January.

2. Oriole Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $10 and $20, respectively. Because of the intense competition Oriole faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2022 are as follows.

		Unit Sales
Product		Quarter 1		Quarter 2
XQ-103		22,000		24,200
XQ-104		13,200		16,500

No changes in selling prices are anticipated. Prepare a sales budget for the 2 quarters ending June 30, 2022. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.

3. Sunland Industries expects credit sales for January, February, and March to be $206,800, $244,400, and $282,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.