Question

Prepare the budgets for each month in the first quarter of 2104for the Bullwinkle, Inc.

*Slaes

Unit Selling Price $12.00

Unit Sales for November, 2013 $112,500.00

Unit Sales for December, 2013 $102,100.00

Expected unit sales for May, 2014 $137,500.00

Expected unit sales for April, 2014 $125,000.00

Expected unit sales for March, 2014 $116,000.00

Expected unit sales for February, 2014 $112,500.00

Expected unit sales for January, 2014 $113,000.00

Bullwinkle, Inc. likes to keep 10% of the next month's unitsales in ending inventory. All sales are on account. 85% of theAccounts Receivalbe are collected in the month of sale, and 15% ofthe Account Receivable are collected in the mont after sale.Account Receivable on December 31,2013, totaled $183,780.

Desired Ending Direct Materials 3/31/14 12625.0lbs

Metal, Plastic, and Rubber together are $0.75 per pound perunit.

Bullwinkle, Inc. likes to keep 5%of the materials needed ofr thenext month in ending inventory. Payment for materials is madewithin 15 days. 50% is paid in the month of purchase, and 50% ispaid in the month after purchase. Accounts Payable on December 31.2013 totaled $120,595 and were paid in full in January 2014.Beginning Raw Materials on December 31,2013 was 11,295 pounds.

*Direct Labor

Labor requires 2 pounds per unit for completion and is paid at arate of $8.00 per hour.

For the First quarter of 2014, do the following:

1. Sales budget,

2. production budget,

3. direct materials budget (round to nearest dollar),

4. direct labor budget (round to the nearest dollar),