1. Selected information concerning sales and production for Abigail Co. for September are summarized as follows:

Estimated sales:

Product KitKat:	80,000 units at $60 per unit
Product Lynx:	40,000 units at $130per unit

Estimated inventories, September 1:

Material 1: 8,000 ounces.

Material 2: 7,000 ounces

Product KitKat: 6,000 units @ $34 = $204,000

Product Lynx : 5,400 units @ $70 = $378,000

Desired inventories at September 30:

Material 1: 6,000 lbs.

Material 2: 5,000 lbs.

Product KitKat: 5,000units @ $34 = $170,000

Product Lynx: 4,000 units @ $70 = $280,000

Direct materials used in production:

	Product KitKat			Product Lynx
Material 1:		1.4	ounces per unit	7.0 ounces per unit
Material 2:		2.4	ounces per unit	3.6 ounces per unit

Costs for direct materials per unit:

Material 1:	$4.00 per lb.
Material 2:	$2.00 per lb.

Direct labor requirements:

	Sort	Fill
Product KitKat	0.8 hr. per unit	0.30 hr. per unit
Product Lynx	1.2 hr. per unit	0.50 hr. per unit

	Sort	Fill
Direct labor rate	$24per hr.	$32 per hr.

Estimated factory overhead costs for September:

Indirect wages $400,000

Depreciation of Plant & Equipment 80,000

Power & Light 50,000

Indirect material 68,000

REQUIRED: For September

1. Prepare a sales budget.

2. Prepare a production budget.

3. Prepare a direct materials purchases budget.

4. Prepare a direct labor cost budget.