Part C: Work out Problems. Answer all questions. / 20 Marks] [ 45 minutes and 10 minutes for uploading/. 1. The following are the sales forecast of Avril Furniture Company for the upcoming fiscal year: Year 2 Year 3 Quarter Quarter 2 Quarter Quarter 4 Quarter Budgeted unit sales 10,000 16.000 15.000 23,000 30.000 Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarter's sales in units. The company expect to start the first quarter with 4,000 units. Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. Fourth quarter ending of materials is estimated as 8,000 pounds and a total of 12,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Required: a. Prepare a production budget showing the number of units to be produced each quarter and for the year in total (5 marks). b. Prepare Avril's Direct Material Budget and calculate direct materials dollar amount of purchases by quarter and for the year in total (8 marks). 2. Ingrim Corporation uses Weighted Average in its process costing system. The following data concern the company's Processing Department for the month of May: Porcentage of Completi Units Direct Materials Conversion Costs Work-in-process beg. May 1" 5.000 65% Units Completed and Transferred out 2,000 Work-in-process end, May 30 ,000 10% Cests in the WIP, May Ist Amount Materials Cost 55.300 Conversion Cost SIO 200 Total Cou SI5.500 Cests added during May 3011 Materials Cost $250,000 Conversion Cost $430,000 Total Cost 5680.000 Required: [7 Marks) a. Determine the equivalent units of production for materials and conversion (3 marks). b. Determine the cost per equivalent unit for materials and conversion costs (consider two decimals) (2 marks). c. Determine the total cost of completed & transferred out units and total cost of work in process ending (2 marks)