Last year, Fulton Umbrellas sold 115,000 units of its Executive umbrella at a price of $45...

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Last year, Fulton Umbrellas sold 115,000 units of its Executive umbrella at a price of $45 per unit. They predict a 5% increase in volume for the next budgeting cycle and a 2% increase in sales price. There are 11,000 units of the Executive in inventory at January 1. Management wants ending finished goods inventory to be equal to one month's average sales. Two types of materials are used to make the product. Eight units of Material A, costing $2.50 each, and three units of Material B, costing $5 each are required for one umbrella. On January 1, there are 8,000 units of Material A in inventory and 4,000 units of Material B. Plans for the year indicate that 9,000 units of Material A and 4,500 units of Material B are to be in the inventory on December 31. Each umbrella can be produced in 30 minutes of direct labor time. Direct labor is paid at the rate of $11.00 an hour. Prepare the following for the next year: a. sales budget b. production budget c. direct materials budget d. direct labor budget **Round all figures to whole dollars** Last year, Fulton Umbrellas sold 115,000 units of its Executive umbrella at a price of $45 per unit. They predict a 5% increase in volume for the next budgeting cycle and a 2% increase in sales price. There are 11,000 units of the Executive in inventory at January 1. Management wants ending finished goods inventory to be equal to one month's average sales. Two types of materials are used to make the product. Eight units of Material A, costing $2.50 each, and three units of Material B, costing $5 each are required for one umbrella. On January 1, there are 8,000 units of Material A in inventory and 4,000 units of Material B. Plans for the year indicate that 9,000 units of Material A and 4,500 units of Material B are to be in the inventory on December 31. Each umbrella can be produced in 30 minutes of direct labor time. Direct labor is paid at the rate of $11.00 an hour. Prepare the following for the next year: a. sales budget b. production budget c. direct materials budget d. direct labor budget **Round all figures to whole dollars**

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Answer a Sales Budget The sales budget can be calculated as follows textProjected Sales textPrevious ... View the full answer