Question 1. A sales budget is given below for one of the products manufactured by the Key Company: The inventory of finished goods at the end of each month should equal 20% of the next month's sales. However, on December 31 the finished goods inventory totaled only 4,000 units. Each unit of product requires three specialized electrical switches. Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on January 1 of the current year. Required: a. Prepare a budget showing the required production each month for January, February, March, and April. b. Prepare a budget showing the quantity of switches to be purchased each month for January, February, and March. Question 2: The LaGrange Corporation had the following budgeted sales for the first half of the current year: ACC 222-Managerial Accounting Assignment 3 The company is in the process of preparing a cash budget and must determine the The accounts receivable balance on January 1 of the current year was $65,000. Required: Prepare expected cash collections budget for January, February, March, April and May. Question 3: Chapter 11: Standard Costs and Variances; page 499: 1. Exercise 11-1, Calculate materials price and quantity variances. (1 mark) 11. Exercise 11-2, Calculate Labor rate and labor efficiency variances. (1 mark)