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Delta Manufacturing has budgeted the following unit sales: 2016 Units April 25,000 May 40,000 June 60,000 July 45,000 of the units budgeted, 40% are sold

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Delta Manufacturing has budgeted the following unit sales: 2016 Units April 25,000 May 40,000 June 60,000 July 45,000 of the units budgeted, 40% are sold by the Coastal Division at an average price of $15 per unit and the remainder are sold by the Central Division at an average price of $12 per unit Instructions Prepare separate sales budgets for each division and for the company in total for the second quarter of 2017, Garver Industries has budgeted the following unit sales 2017 Units January 10,000 February 8,000 March 9,000 April 11,000 May 15,000 The finished goods units on hand on December 31, 2016, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of S4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 10% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2016 Instructions For the first quarter of 2017, prepare (1) a production budget and (2) a direct materials budget The following facts are known: The total pounds needed for production are 2 times the units to be produced The desired ending direct materials inventory is 20% of the total pounds needed for production The beginning direct materials inventory is equal in number to 10% of the units to be produced Cost per pound is 55 Total cost of the direct materials purchases is $1,035,000 Instructions Prepare a direct materials budget for the period. Shep Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first quarter of 2016, the following data are developed 1 Sales: 20,000 units, unit selling price $30 2 Variable costs per dollar of sales: Sales commissions 6 Delivery expense 2x Advertising Feed costs per quarter Sales salaries $24.000 Office salaries 19.000 Depreciation 6,000 Insurance 2,000 1.000 Instructions Prepare a selling and administrative expense budget for the first of 2016

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