Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year:

a. Estimated sales at $125 per unit:

Month	Sales
January	25,000 units
February	30,000 units
March	45,000 units
April	50,000 units

b. Estimated finished goods inventories:

Month	Finished Goods Inventory
January 1	2,000 units
January 31	10% of next months sales
February 28	10% of next months sales
March 31	10% of next months sales

c. Work in process inventories are estimated to be insignificant (zero).

d. Estimated direct materials inventories:

Month	Direct Materials Inventory
January 1	1,000 lbs.
January 31	1,500 lbs.
February 28	2,000 lbs.
March 31	2,500 lbs.

e. Manufacturing costs:

Line Item Description	Per Unit
Direct materials (0.8 lb. per unit $15 per lb.)	$ 12
Direct labor (2.5 hrs. per unit $24 per hr.)	60
Variable factory overhead ($1.20 per direct labor hour)	3
Fixed factory overhead ($200,000 per month, allocated using 40,000 units)	5
Total per-unit manufacturing costs	$80

f. Selling expenses:

Line Item Description	Amount
Variable selling expenses	$4 per unit
Fixed selling expenses	$150,000
Administrative expenses (all fixed costs)	$400,000

Question Content Area

1. Prepare a sales budget for the first quarter.

Line Item Description	January	February	March	First Quarter
Estimated units sold	Estimated units sold	Estimated units sold	Estimated units sold	Estimated units sold
Selling price per unit	x$Selling price per unit	x$Selling price per unit	x$Selling price per unit	x$Selling price per unit
Total budgeted sales	$Total budgeted sales	$Total budgeted sales	$Total budgeted sales	$Total budgeted sales