The Bear Corporation will begin business operations on January 1, 2021. Below is the anticipated SALES...

 

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The Bear Corporation will begin business operations on January 1, 2021. Below is the anticipated SALES BUDGET (in units): Jan. Feb. Mar. Apr. May 40,000 30,000 50,000 50,000 40,000 ADDITIONAL INFORMATION a. Ending finished goods inventory should be equal to 10% of next month's sales projection. b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound. Labor cost is $10 per unit produced. C: d. Ending raw material inventory should be equal to 20% of next month's material requirement. e. Factory overhead is $18,000 per month of which $8,000 is for depreciation. t. All costs are paid in the month incurred except for purchases which is paid in the following month. 8. The selling price per unit is $100. REQUIRED: Using Excel, in good form: Prepare a SALES BUDGET for the first quarter (January through March). Prepare a PRODUCTION BUDGET for the first quarter (January through March). Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.) Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March). The Bear Corporation will begin business operations on January 1, 2021. Below is the anticipated SALES BUDGET (in units): Jan. Feb. Mar. Apr. May 40,000 30,000 50,000 50,000 40,000 ADDITIONAL INFORMATION a. Ending finished goods inventory should be equal to 10% of next month's sales projection. b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound. Labor cost is $10 per unit produced. C: d. Ending raw material inventory should be equal to 20% of next month's material requirement. e. Factory overhead is $18,000 per month of which $8,000 is for depreciation. t. All costs are paid in the month incurred except for purchases which is paid in the following month. 8. The selling price per unit is $100. REQUIRED: Using Excel, in good form: Prepare a SALES BUDGET for the first quarter (January through March). Prepare a PRODUCTION BUDGET for the first quarter (January through March). Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.) Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).

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Option C is correct Given ... View the full answer