EB 1.

LO 7.2Lovely Wedding printing is budgeting sales of 32,000 units and already has 4,000 in beginning inventory. How many units must be produced to also meet the 6,000 units required in ending inventory?

EB 2.

LO 7.2How many units are in beginning inventory if 32,000 units are budgeted for sales, 35,000 units are produced, and the desired ending inventory is 9,000 units?

EB 3.

LO 7.2Barnstormer sells airplane accessories for $20 each. It expects sales of 120,000 units in quarter 1 and a 7% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year. EB 4. LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900 in May. The required ending inventory is 20% of the next month’s sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year. EB 5. LO 7.2Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs$3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. What is the budgeted cost of purchases for March?

EB 6.

LO 7.2Given the following information from Power Enterprises’ direct materials budget, how much direct materials needs to be purchased?

EB 7.

LO 7.2Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next year’s production is estimated at 75,000 units. What is the amount to be included in next year’s direct labor budget? EB 8. LO 7.2How many units are estimated to be sold if Kino, Inc., has planned production of 750,000 units, a desired beginning inventory of 30,000 units, and a desired ending inventory of 45,000 units? EB 9. LO 7.3Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April? EB 10. LO 7.3My Aunt’s Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March? EB 11. LO 7.3Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018? EB 12. LO 7.3Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased$22,000, $25,000, and$23,000 respectively.

EB 13.

LO 7.3What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are$21,000 and $25,000, respectively? EB 14. LO 7.3Earthie’s Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as$75,000 in April, $65,000 in May, and$90,000 in June?

EB 15.

LO 7.4Judge’s Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of$2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are$49,000. What would be the budgeted amounts for 33,000 and 35,000 units?

EB 16.

LO 7.4Using the following budgeted information for production of 5,000 and 12,000 units, prepare a flexible budget for 9,000 units.

EB 17.

LO 7.5The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are$19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of \$97,000?