1. Oriole Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total 1,100,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 20% higher than the budgeted sales for the first quarter of 2022.

Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarters budgeted sales volume.

Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2023 are 495,000 pounds.

(a) Prepare the sales budgets by quarters for 2022.

2. Oriole Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,100,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 20% higher than the budgeted sales for the first quarter of 2022. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarters budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2023 are 495,000 pounds. Oriole budgets 0.30 hours of direct labor per unit, labor costs at $15 per hour, and manufacturing overhead at $20 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $6,600,000.

(a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.)

Total unit cost

$enter total unit cost in dollars rounded to 2 decimal places

3. The budget committee of Blossom Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2022.

1.		Sales for May are expected to be $640,000. Sales in June and July are expected to be 5% higher than the preceding month.
2.		Cost of goods sold is expected to be 75% of sales.
3.		Company policy is to maintain ending merchandise inventory at 10% of the following months cost of goods sold.
4.		Operating expenses are estimated to be as follows:

Sales salaries		$28,000		per month
Advertising		6	%	of monthly sales
Delivery expense		2	%	of monthly sales
Sales commissions		5	%	of monthly sales
Rent expense		$4,000		per month
Depreciation		$640		per month
Utilities		$480		per month
Insurance		$400		per month

5.

Interest expense is $2,000 per month. Income taxes are estimated to be 20% of income before income taxes.

(a) Prepare the merchandise purchases budget for each month in columnar form.