17. Budget Sequence. Indicate the order in which the following budget schedules are prepared. 1. Direct materials purchases 2. Manufacturing overhead 3. Income statement 4. Direct Labor 5. Selling and administrative 6. Cash 7. Production 0. Balance sheet 9. Sales 10. Capital expenditures18. Sales Budget. Schwartz and Company expects to sell 100 units in the first quarter, 90 units in the second quarter, 150 units in the third quarter, and 160 units in the fourth quarter. The average sales price per unit is expected to be $3,000. Prepare a sales budget for each quarter and include a column for the year ending December 31. 19. Production Budget. Schwartz and Company expects to sell 100 units in the first quarter and 90 units in the second quarter. Assuming the company prefers to maintain finished goods inventory equal to 10 percent of the next quarter's sales, prepare a production budget for the first quarter using Figure 6.3 "Production Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a production budget for the first quarter only.) 20. Direct Materials Purchases Budget. The production budget for Kaminski Products shows the company expects to produce 500 units in the first quarter and 600 units in the second quarter. Each unit requires 10 pounds of direct materials at a cost of $2 per pound. The company prefers to maintain raw materials inventory equal to 20 percent of next quarter's materials needed in production. Prepare a direct materials purchases budget using Figure 6.4 *Direct Materials Purchases Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a direct materials purchases budget for the first quarter only.) 21.Direct Labor Budget. The production budget for Kaminski Products shows the company expects to produce 500 units in the first quarter. Assuming each unit of product requires 3 direct labor hours at a cost of $13 per hour, prepare a direct labor budget for the first quarter using Figure 6.5 "Direct Labor Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a direct labor budget for the first quarter only.) 22. Manufacturing Overhead Budget. The production budget for Kaminski Products shows the company expects to produce 500 units in the first quarter. Assume variable overhead cost per unit is $5 for indirect materials, $8 for indirect labor, and $3 for other items. Fixed overhead cost per quarter is $30,000 for salaries, $20,000 for rent, and $8,000 for depreciation. Prepare a manufacturing overhead budget for the first quarter using Figure 6.6 "Manufacturing Overhead Budget for Jerry's Ice Cream" as a guide (Hint: you are preparing a manufacturing overhead budget for the first quarter only.) 23. Sales Cash Collections Budget. All sales for Malik and Associates are on credit. Accounts receivable at the end of last quarter totaled $100,000. Credit sales for the first quarter of the upcoming period are expected to be $300,000. The company expects to collect 70 percent of sales in the quarter of the sale, and 30 percent the quarter following the sale. Prepare a sales cash collections budget for the first quarter of the upcoming period using the top of Figure 6.10 "Cash Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a sales cash collections budget for the first quarter only.) 24. Purchases Cash Payments Budget. All direct material purchases made by Keen and Company are on credit. Accounts payable at the end of last quarter totaled $50,000. Purchases for the first quarter of the upcoming period are expected to be $200,000. The company expects to pay 40 percent of purchases in the quarter of purchase and 60 percent the quarter following the purchase. Prepare a purchases cash payments budget for the first quarter of the upcoming period using the middle of Figure 6.10 "Cash Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a purchases cash payments budget for the first quarter only.) 25. Sales Budget for Service Organization; Ethical Issues. Rami and Associates is an accounting firm that estimates revenues based on billable hours. The company expects to charge 8,000 hours to clients in the first quarter, 9,000 hours in the second quarter, 7,000 hours in the third quarter and 8,500 hours in the fourth quarter. The average hourly billing rate is expected to be $100. Required: 1. Prepare a services revenue budget for each quarter and include a column for the year ending December 31. (Hint: this is similar to a sales budget except sales are measured in labor hours rather than in units, and revenue is measured as an average hourly billing rate rather than a sales price per unit.) 2. Since the manager of the company is given a bonus if actual billable hours exceed budgeted billable hours, the manager intentionally underestimated the number of expected billable hours for each quarter. How might this underestimate affect the company