1- Using your spread sheet from the Bicycle Company.Assuming Q1 beginning inventory does not change. What would the required production be for Q1 if 50% of Q2 sales was required instead of 25%?

A-110 Units

B- 185 Units

C- 150 Units

D- Increase by 15 Units

2- Using your Orange Juice Spreadsheet for the Direct Materials Budget. You find out that materials will increase to $1.50 per pound vice $1.25 in Q3. How much will the cost of raw materials now be in Q3? For the year?

A- $1,066,500.00, $3,455,625.00

B- $1,066,500.00, $3,756,450

C- $888,750.00,3455,625.00

D- No change to either

Bicycle Company Sales Budget (From Sheet 1) Q3 04 Year Q1 next year 200 650 60 Budgeted Sales/Units Selling Price Per Unit Total Budgeted Sales 50 300 15,000.00 Q2 300 300 90,000.00 100 300 30,000.00 300 60,000.00 12 $ $ $ $ $ 195,000.00 Q1 Q2 03 Q4 200 Production Budget Budgeted Sales/Units Add: Desired Ending Inventory Total Required Less Beginning Inventory Required Production 50 75 125 15 110 300 50 350 75 275 100 15 115 Year 650 15 Note: 25% of next Qtrs Sales as Decided by Mgmt 665 15 115 500 Orange Juice Company Production Budget Budgeted Sales/Units Add: Desired Ending Inventory Total Required Less Beginning Inventory Required Production Q1 200,000 28,000 228,000 2,000 226,000 Q2 280,000 25,000 305,000 28,000 277,000 Q3 250,000 19,000 269,000 25,000 244,000 Q4 190,000 3,000 193,000 19,000 174,000 Year 920,000 3,000 923,000 2,000 921,000 Q1 Q2 Year 921,000 226,000 277,000 Direct Materials Budget Production (From Prod budget Materials per unit (POUNDS) Production Required Add: Desired Ending Inventory (10%) Total Required Less: Beginning Inventory Materials to be purchased Cost of Raw Materials (per pound) Cost of Raw Materials Purchased 04 174,000 3 522,000 22,500.0 544,500 Q1 Next year 225000 10% Percentage of next qtrs Production 831,000 73,200.0 904,200 678,000 83,100 761,100 21,000 740,100 $ 1.25 $ 925,125.00 Q3 244,000 3 732,000 52,200.0 784,200 73,200 711,000 $ 1.25 $ 888,750.00 2,763,000 22,500 2,785,500 21,000 2,764,500 $ 1.25 $ 3,455,625.00 $ $ 1.25 - $ $ 1.25