On january 1, 2020, the carla vista company budget committee has reached agreement on the following data for the 6 months ending june 30, 2020. sales units: first quarter 5,400; second quarter 6,100; third quarter 7,900. ending raw materials inventory: 40% of the next quarter’s production requirements. ending finished goods inventory: 25% of the next quarter’s expected sales units. third-quarter production: 7,430 units. the ending raw materials and finished goods inventories at december 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 5 pounds of raw materials are required to make each unit of finished goods. raw materials purchased are expected to cost $6 per pound.

prepare a production budget by quarters for the 6-month period ended june 30, 2020.

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.