EXCELL Only - When you create your budgets, you are required to use formulas in the cells of the spreadsheet to do the calculations.

Happy Day Company provided the following information to prepare budgets for January, February, and March 2023, including the total for the quarter.

Sales were 67,000 units in December 2022. Forecasted sales in units are: January, 70,000; February, 77,000; March, 89,000; April, 106,000. The selling price is $70 per unit.

Ending finished goods inventory must equal 20% of the next months expected unit sales. The December 31 finished goods inventory is 6,000 units, which does not comply with this requirement.

Ending direct materials inventory must equal 15% of the next months direct materials requirements. The December 31 direct materials inventory was 1,500 units, which does not comply with this policy. The budgeted March 31 direct materials inventory is 35,000 units. Each unit of finished goods inventory requires 3 units of direct materials. Direct materials cost is $24 per unit.

Each unit of finished goods inventory requires 45 minutes (3/4 hour) of direct labor at a rate of $29 per hour.

Factory overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $3.25 per direct labor hour. Depreciation is $40,000 per month and is considered fixed factory overhead.

Sales commissions are 15% of sales and are paid in the month of sale. The sales managers salary is $6,000 each month.

Monthly general and administrative expenses include $5,000 of administrative salaries. It also includes $350 of interest payable on a long-term note.

Prepare the following budgets for Happy Day Company:

Sales budget

Production budget

Direct materials budget

Direct labor budget

Factory overhead budget

Selling expense budget

General and administrative expense budget