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5/14/2020 Print Assignment: EXAM III - Budget Problems (CH 22) ::true Question 1 Sandhill Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are ex re year are expected to total 2,000,000 units. Quarterly sales are 22%, 26%, 27%, and 25%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. volume . Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 498,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. SANDHILL COMPANY Sales Budget Quarter 2 3 Year SANDHILL COMPANY Production Budget Quarter SANDHILL COMPANY Direct Materials Budget Quarter Question 2 are as follows. Crane Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets Sales. Sales for the year are expected to total 1,400,000 units. Quarterly sales are 20%, 25%, 26%, and 29%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020. https://edugen.wileyplus.com/edugen/shared/assignment/test/agprint.uni?numberQuest=true&title Type=true 1/2