6.Which of the following budgets must be prepared first?

A. Direct materials budget

B. Sales budget

C. Direct labor budget

D. Cash budget

E. Production budget

7.

Pott Corp. produces a single product. Data for Pott's first month of business is below: Number of units sold (@$300 each) 4,115 Number of units produced 5,000 Variable cost per unit: Direct materials $80 Direct labor $20 Manufacturing overhead $12 Selling and administrative expense $10 Fixed costs: Manufacturing overhead $260,000 Selling and administrative expense $140,000 Compared to variable costing, how much greater would Pott Corp.'s ending inventory value be under absorption costing?Paradise Corp. budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels of raw materials and finished goods are planned for next year. Beginning inventory Ending inventory Raw materials (pounds) 60,000 42,000 Finished goods (units) 34,000 51,000 Four pounds of raw material are needed to produce each unit of finished product. Each pound of raw material costs $1.35. If Paradise plans to sell 300,000 units next year, how much should they budget for cash payments for materials