PROBLEM 1.) Perine Company has 2,284 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 are 4,230 and 5,740 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $9. Management desires an ending inventory equal to 27% of next months materials requirements. Prepare the direct materials budget for January. (Round intermediate calculations and final answer to 0 decimal places, e.g. 5,275.)

PROBLEM 2.) Danner Company expects to have a cash balance of $58,410 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows.

Collections from customers: January $110,330, February $194,700.

Payments for direct materials: January $64,900, February $97,350.

Direct labor: January $38,940, February $58,410. Wages are paid in the month they are incurred.

Manufacturing overhead: January $27,258, February $32,450. These costs include depreciation of $1,947 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $19,470, February $25,960. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $15,576 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,450. The company wants to maintain a minimum monthly cash balance of $25,960. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter "0" for the amounts.)

PROBLEM 3.) Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

Quarter		HD-240
1		5,200
2		7,150
3		8,320
4		10,190

The January 1, 2017, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter and in total for 2017.