PA8-5 Preparing Operating Budget Components [LO 8-3f, g, h] Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for S60. Wesley expects the following unit sales: January February March April 2,100 2,900 2.600 2,000 Wesley's ending finished goods inventory policy is 35 percent of the next month's sales. Suppose each handisaw takes approximately 65 hours to manufacture, and Wesley pays an average labar wage of $15.50 per hour Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $5.00 each. The company has an ending raw materials inventory policy of 10 percent of the following month's production requirements. Materials other than the housing unit total $4.50 per handisaw. are 5 percent of sales dollars, and administrative expenses are fixed at $17,000 per month Required 1. Compute the budgeted cost of goods sold for the first quarter. (Round direct material, direct labor and overhead costs per unit to 2 decimal places. Round final answers to the nearest dollar amount.) 2.Compute the budgeted selling and administrative expenses. 3. Complete the budgeted income statement for the handisaw product for the first quarter. (Round direct material, direct labor and overhead costs per unit to 2 decimal places. Round final answers to the nearest dollar amount.)