FIND SALES BUDGET, PRODUCTION BUDGET, DIRECT MATERIAL AND LABOUR BUDGETS, SELLING AND ADMIN, AND CASH BUDGET:

	JANUARY	FEBRUARY	MARCH	TOTAL
BUDGETED SALES (UNITS)	1000	2,000	6,000	9 ,000.00

1. THE PRICE FOR EACH UNIT IS $2.00 2. FROM PAST EXPERIENCE, MANAGEMENT WANTS ENDING INVENTORY TO EQUAL 10% OF THE FOLLOWING MONTH'S SALES 3. DECEMBER'S ENDING INVENTORY WAS 500 UNITS 4. MARCH'S ENDING INVENTORY NEEDS TO BE 600 UNITS 5. EACH UNIT NEEDS 10 GRAMS OF DIRECT MATERIAL, COSTING $.05/GRAM 6. DECEMBER'S ENDING DIRECT MATERIAL INVENTORY WAS 200 UNITS, COSTING $10 7. MANAGEMENT WANTS MARCH'S DIRECT MATERIAL ENDING INVENTORY TO BE 1000 UNITS, COSTING $50 8. FROM PAST EXPERIENCE, MANAGEMENT WANTS ENDING DIRECT MATERIALS TO EQUAL 15% OF NEXT MONTH'S PRODUCTION NEEDS 9. IT TAKES 1 LABORER 10 MINUTES TO MAKE 1 UNIT OF PRODUCT. LABORERS ARE PAID $5/HOUR 10. SELLING AND ADMIN HAS BOTH FIXED AND VARIABLE COMPONENTS. THE FIXED EXPENSES ARE AT $500/MONTH WITH $100 BEING FOR DEPRECIATION. THE VARIABLE EXPENSE IS $.02 /UNIT 11. ALL SALES ARE ON ACCOUNT (CUSTOMERS TAKE INVENTORY AND PAY FOR IT LATER) 70% OF ALL SALES ARE COLLECTED IN THE MONTH OF THE SALE. 25% IS COLLECTED IN THE SUBSEQUENT MONTH. 5% IS UNCOLLECTABLE $3,000 OF DECEMBER'S SALES WILL BE COLLECTED IN JANUARY 12. BORROWING IS DONE AT THE BEGINNING OF THE MONTH AND REPAYMENTS ARE MADE AT THE END OF THE MONTH. THE COMPANY CAN BORROW AT A RATE OF 12%/YEAR AND THE COMPANY REQUIRES A MINIMUM CASH BALANCE OF $1,000. BORROWING IS DONE IN $1,000 INCREMENTS 13. 1 JANUARY OPENING CASH BALANCE IS $1,500 14. $2,000 WAS BORROWED ON 1 DECEMBER