Exercise 3 E9-2 Edington Electronics Inc. produces and sells two models of pocket calculators, XQ- 103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2014 are as follows. Unit Sales Product Quarter 1 Quarter 2 X0-103 20,000 22,000 XQ-104 12,000 15,000 No changes in selling prices are anticipated. Instructions Prepare a sales budget for the 2 quarters ending June 30, 2014. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total. E9-3 Garza and Neely, CPAs, are preparing their service revenue (sales) budget for the coming year (2014). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,300 1,600 2,000 2,400 Tax 3,000 2,200 2,000 2,500 Consulting 1,500 1,500 1,500 1,500 Average hourly billing rates are auditing $80, tax $90, and consulting $100. Instructions Prepare the service revenue (sales) budget for 2014 by listing the departments and show- ing for each quarter and the year in total, billable hours, billable rate, and total revenue. E9-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows. Quarter 1 2 3 4 HD-240 5,000 7,000 8,000 10,000 The January 1, 2014, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2015 are expected to be 25% higher than sales in the same quarter in 2014. Instructions Prepare quarterly production budgets for each quarter and in total for 2014