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E10.18 Prepare quarterly sales budgets. Roche and Young, CPAS, are preparing their service revenue (sales) budget for 2020. Their practice is divided into three departments:

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E10.18 Prepare quarterly sales budgets. Roche and Young, CPAS, are preparing their service revenue (sales) budget for 2020. Their practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are as follows: Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,200 1,600 2,000 2,400 3,000 2,500 2,400 2,000 Consulting 1,500 1,500 1,500 1,500 Average hourly billing rates are $60 for auditing, $70 for tax, and $80 for consulting services. Instructions Prepare the service revenue (sales) budget for 2020 by listing the departments and showing the billable hours, billable rate, and total revenue for each quarter and the year in to tal E10.19 Prepare quarterly production budgets. (LO 2) Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2020 sales budget is as follows: Quarter Units of HD-240 1 6,000 2 7,000 9,000 4 10,000 The January 1,2020, inventory of HD-240 is 1,500 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2021 to be 20% higher than sales in the same quarter in 2020. Instructions Prepare quarterly production budgets for each quarter for 2020. Prepare a direct materials purchases budget. (LO 2) Samano Industries has adopted the following production budget for the four quarters of 2020: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units 6,000 8,000 9,000 10,000 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,800 kg Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,000 units Instructions Prepare a direct materials purchases budget by quarters for 2020

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