18. Sales Budget. Schwartz and Company expects to sell 100 units in the first quarter, 00 units in the second quarter, 150 units in the daird 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. 10. Production Budget. Schwartz and Company expects to sell 100 units in the first quarter and 00 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 rst quarter using Figure 6.3 "Production Budget for .Terry's lce 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 mw 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.) 2LDirect Labor Budget. The production budget for Kamirrslti Products shows the company expects to produce 600 units in the first quarter. Assuming each unit of product requires 3 direct lab-or hours at a cost of $13 per hour, prepare a direct labor budget for EllE first quarter using Figure 6.5 \"Direct Labor Budget for .Terry'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, 60 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 Clverhead 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 Malilr. and Associates are on credit Accounts receivable at tl'iE 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 '?0 percent of sales in the quaner of the sale, and 3.0 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 lce Cream\" as a guide. (Hint: you are preparing a sales cash collections budget for the first quarter only.) 24. Purchase-s 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 Jeny'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 Amociates is an accounting firm that estimates revenues based on billable hours. The company expects to charge 0,000 hours to clients in the first quarter, 9,000 hours in the second quarter, 2?,000 hours in the third quarter and 0,500 hours in the fourth quartet 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 El'LE year ending December 31. (Hint: dtis is similar to a sales budget except sales are measured in labor hours rather than in units, and revenue is measured as an avemge 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