The Bear Corporation will begin business operations on January $1,2021.$

Below is the anticipated SALES BUDGET $($in units$)$:

Jan. $40,000$

Feb. $30,000$

Mar. $90,000$

Apr. $80,000$

ADDITIONAL INFORMATION

a$.$ Ending finished goods inventory should be equal to $10\%$ of next month's sales projection.

b$.$ Each unit requires $3$ pounds of material at a raw material cost of $$5$ per pound.

c: Labor cost is $$10$ per unit produced.

d$.$ Ending raw material inventory should be equal to $20\%$ of next month's material requirement.

e$.$ Factory overhead is $$18,000$ per month of which $$8,000$ is for depreciation.

f$.$ All costs are paid in the month incurred except for purchases which is paid in the following month.

g$.$ The selling price per unit is $$100.$

REQUIRED: Using Excel, in good form:

Prepare a SALES BUDGET for the first quarter $($January through March$).$

Prepare a PRODUCTION BUDGET for the first quarter $($January through March$).$

Prepare a Raw Materials PURCHASES BUDGET for the first quarter $($Jan$.$ through Mar.$)$

Prepare a CASH DISBURSEMENTS budget for the first quarter $($January through March$).$

Answer rating: 100% (QA)

Here are the budgets requested in Excel format Sales Budg... View the full answer