Create a Selling and Administrative Budget Operating Budget Create an operating budget for the first quarter of a new business. Projected Sales are: Variable Selling & Administrative Expenses are: o Sales Commissions (5.03 per unit) Delivery (S.01 per unit) o Office Support (5.02 per unit) Fixed Selling & Admninistrative Experises are $2500 monthly. Month #1: $65,000 Month #2: $97,500 Month #3: $130,000 Month #4: $110,500 Combine all Budgets to Create a Budgeted Income Statement Complete a Budgeled Income Statement for months 1 through 3, and a Budgeted Income Statement that reflects the total first quarter. These sales are based on selling one product with a selling price of 56.50 Create a Production Budget based on Units (not dollars). Desired Finished Goods Ending Inventory each month is 10% of the next month's projected sales. (Use the Finished Goods Ending Inventory amount for the previous year for the Beginning Finished Goods Inventory start this year). Create a Direct Materials Purchase Budget Each unit produced requires 10# of direct materials at a cost of $0.08 per pound. Desired Ending Direct Materials Inventory is 10% of the next month's material requirements. Create a Direct Labor Budget Direct Labor Costs are $15/Iwur Each unit requires 5 minutes of labor Create an Overhead Budget Variable Overhead Expenses are: o Supplies (5.02 per unit) Inspection (S.10 per unit) o Maintenance and Repair ($.03 per unit) o Utilities ($.01 per unit) Fixed Overhead Expenses are $1100 monthly. Month #1 Month #2 Month #3 Month #4 | Part 1 Materials Sales Projected Quantity 2 Beginning FG Inventory 5 Desired FG Inventory Items Produced 3 Month #2 Month #3 Month #4 Month #2 Month #3 Month #4 Month #2 Month #3 Month #4 Material Quantity Needed 0 1 Material Cost 2 3 Part 2 Labor Month #1 4 Sales 5 Projected Quantity 6 7 Beginning FG Inventory 8 Desired FG Inventory 9 Items Produced 0 1 Direct Labor 2 3 Part 3 Overhead Month #1 4 Sales 5 Projected Quantity 6 7 Beginning FG Inventory 8 Desired FG Inventory 9 Items Produced 0 1 Variable Manufacturing Overhead 2 Supplies 3 Inspection 4 Maintenance & Repair 5 Utilities 6 Fixed Overhead 7 8 Part 4 S and A Month #1 9 0 Sales 1 Projected Quantity 2 3 Beginning FG Inventory 4 Desired FG Inventory 5 Items Produced 6 7 Variable S&A 8 Commission 9 Delivery 0 Office Supplies 1 2 Fixed S&A 3 4 Part 5 Budgeted Income Statemer Month #1 5 6 Sales 7 Projected Quantity 8 9 Beginning FG Inventory 0 Desired FG Inventory 1 Items Produced 2 3 Material Cost 4 5 Direct Labor Cost 6 7 Gross Margin 8 Month #2 Month #3 Month #4 First Quarter