Prepare a sales budget, production budget, direct material purchase budget and direct labour budget for the first quarter

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January February March April May Unit sales 40,000 50,000 60,000 60,000 62,000 Each unit is expected to sell for a price of $205. Finished goods inventory on January 1 is projected to be 32,000 units. Quiz Company plans production to have ending Inventory equal to 80% of the next month's sales. Each unit requires two materials: Material 1 and Material 2. Information on the materials is as follows. Direct materials Material 11 Material 2 Per-unit usage 10 lbs. 6 DM cost per lb. $8 5 Quiz Company's materials inventory policy is to have ending materials on hand to meet 50% of the following month's production needs. Inventory on January 1 is expected to satisfy this policy. Each unit requires 3 hours of direct labor. Direct labor cost is $14.25 per hour. Prepare a sales budget, production budget, direct materials purchases budget, and direct labor budget for the first quarter. Determine the beginning raw materials inventory for Material 1 for the quarter (in lbs.) January February March April May Unit sales 40,000 50,000 60,000 60,000 62,000 Each unit is expected to sell for a price of $205. Finished goods inventory on January 1 is projected to be 32,000 units. Quiz Company plans production to have ending Inventory equal to 80% of the next month's sales. Each unit requires two materials: Material 1 and Material 2. Information on the materials is as follows. Direct materials Material 11 Material 2 Per-unit usage 10 lbs. 6 DM cost per lb. $8 5 Quiz Company's materials inventory policy is to have ending materials on hand to meet 50% of the following month's production needs. Inventory on January 1 is expected to satisfy this policy. Each unit requires 3 hours of direct labor. Direct labor cost is $14.25 per hour. Prepare a sales budget, production budget, direct materials purchases budget, and direct labor budget for the first quarter. Determine the beginning raw materials inventory for Material 1 for the quarter (in lbs.)

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January sales 40000 units February sales 50000 units March sales 60000 units Sales Budget January 40... View the full answer