PROBLEM 9-23 Integrated Operating Budgets [LO2] The Western Division of Keltic Company manufactures a vital component that is used in one of Keltic's major product lines. The Western Division has been experiencing some difficulty in coordinating activities among its various departments, which has resulted in some shortages of the component at critical times. To overcome the shortages, the manager of the Western Division has decided to initiate a monthly budgeting system that is integrated among departments. The first budget is to be for the second quarter of the current year. To assist in creating the budget, the divisional controller has accumulated the following information: Sales. Sales through the first three months of the current year were 48,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below: January (actual) . 9,000 February (actual). 15,000 March (actual). 24,000 April (planned) . 30,000 ipg May (planned) 53,000 June (planned) 75,000 July (planned) .... . .... 68,000 August (planned)... .........1.1049mm 45.000 DA'S In total, the Western Division expects to produce and sell 380,000 units during the current year. DALS www.tex-cetera.com