E9-3

Thome and Crede Company

Service Revenue Budget
For the Year Ending December 31, 2017
Department Q1 Q2 Q3 Q4 Year Avg hourly billing rates
Auditing 2300 1600 2000 2400 $80
Tax 3000 2200 2000 2500 $90
Consulting 1500 1500 1500 1500 $110
Total Revenue $619,000 $491,000 $505,000 $582,000 $2,197,000

E9-6
a)
HARDIN COMPANY
Production Budget
For the 6-month period ended June 30, 2017
Quarter
1 2 3 Total
Expected unit sales 5000 6000 7000
Add: Desired ending finished goods un 1500 1750 1950
Total required units 6500 7750 8950
Less: Beginning finished goods units 1250 1500 1750
Required production units 5250 6250 7200 18700

b)
HARDIN COMPANY
Direct Materials Budget
For the 6-month period ended June 30, 2017
Quarters
1 2 3 Total
Units to be produced 5250 6250 7200
Direct Materials per unit 3 3 3
Total pounds needed for production 15750 18750 21600
Add: Ending direct materials 10000 11520
Total materials required 25750 30270 21600
Less: Beginning direct materials 6300 10000 11520
Direct Materials purchases 19450 20270 10080
Cost per pound $4 $4 $4
Total cost of DM purchases $77,800 $81,080 $40,320 $199,200