Music Makers expects to sell 500,000 CDs per month, including 350,000 data CDs and 150,000 music CDs. The selling price per unit is \(\$ 2.30\) for data CDs and \(\$ 3.10\) for music CDs. The desired level of ending inventory of raw materials is 5,000 units for blank CDs, containers, and cellophane wrap. Wrap is measured in feet, and each unit requires one foot of wrap. Paper inserts are obtained as needed, and the desired ending inventory is zero for these materials. At the beginning of May, Music Makers has 9,500 blank CDs, 2,500 containers, and 20,000 feet of cellophane in stock. The cost per unit of raw materials is \(\$ 0.72\) for CDs, \(\$ 0.12\) for containers, \(\$ 0.07\) for inserts, and \(\$ 0.01\) per foot of cellophane. Direct labor hours to produce each CD is 0.023 for copying and 0.015 for packaging. Direct labor cost is \(\$ 12\) per hour for copying and \(\$ 8\) per hour for packaging.

Required Use the data provided to prepare a (A) sales budget, (B) direct materials budget, and (C) direct labor budget for Music Makers for May. Use the following format. Use cell references and formulas where possible.

Use appropriate formatting for numbers.
If expected sales were 400,000 data CDs and 100,000 music CDs, what would be the effect on the budgets?

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A 1 Monthly Sales Budget 2 3. Expected sales in units 4 Selling price per unit 5 Total sales 6 7 Direct Materials Budget 8 9 Expected sales 10 Desired ending inventory 11 Total needs 12 Beginning inventory 13 Units to purchase 14 Cost per unit 15 Cost of materials 16 17 Direct Labor Budget 18 19 Units to produce 20 Direct labor hour per unit 21 Total hours 22 Direct labor cost per hour 23 Total direct labor cost B C D Data Music Total LLI E F CDs Containers Inserts Cellophane Total Copying Packaging Total