In one class, we showed that, based on I/B/E/S Guidance dataset, the three most popular forecasts made by managers are earnings (EPS), sales, and capital expenditure. Let start with sales forecasts and work on some budgets. Company X is preparing its annual budgets for the year ending December 31, 2019, with the following data.

Table 1: Company X Annual Budgets
		Product A	Product B
Sales Budget
	Sales Volume forecast in units	300,000	180,000
	Unit selling price	20	30
Production Budget
	Desired ending finished goods units	30,000	25,000
	Beginning finished goods units	20,000	15,000
Direct materials budget
	Direct materials per unit (kg)	2	3
	Desired kilograms of ending direct materials	50,000	20,000
	Beginning kilograms of direct materials	40,000	10,000
	Cost per kilogram	2	3
Direct labor budget
	Direct labor hours per unit	0.5	0.75
	Direct labor rate per hour	12	12
Budgeted income statement
	Total unit cost	11	20
Other budgeted information
	Selling expenses	560,000	440,0000
	Administrative expenses	420,000	380,000

Prepare the following annual budgets for the year. Show data for each product.

1. Sales budget (2 points)

2. Production budget (6 points)

3. Direct materials budget (10 points)

4. Direct labour budget (4 points)