2. Production budget (amounts in full, not in thousands) If an amount is zero, enter "0".

Optima Company Production Budget For the Year Ending December 31, 20X1

	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Total
Sales	___________	______________	____________	____________	_______________
Desired ending inventory	____________	______________	_____________	_____________	____________
Total needs	__________	______________	___________	____________	____________
Less: Beginning inventory	________	___________	____________	____________	_____________
Production	__________	_____________	____________	___________	___________

3. Direct Materials Purchases Budget (in thousands, except for per unit/hour data) If required, round answers to one decimal place.

Optima Company Direct Materials Purchases Budget For the Year Ending December 31, 20X1

	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Total
Production	_________	___________	___________	_____________	____________
Materials/unit	_______________	____________	______________	___________	_____________
Production needs	____________	______________	________________	_______________	__________
desired ending inventory	___________	____________	______________	__________	_____________
Total needs	___________	____________	______________	____________	___________
Less: Beginning inventory	_____________	______________	_______________	____________	______________
Purchases	__________	__________	_____________	____________	__________
Cost per unit	___________	____________	______________	__________	____________
Purchase cost	__________	____________	___________	______________	________

4. Direct Labor Budget (in thousands, except per unit/hour data)

Optima Company Direct Labor Budget For the Year Ending December 31, 20X1

	Qtr. 1	Qtr. 2	Qtr. 3	Qtr. 4	Total
Production	fill in the blank f7c805038fdb068_1	fill in the blank f7c805038fdb068_2	fill in the blank f7c805038fdb068_3	fill in the blank f7c805038fdb068_4	fill in the blank f7c805038fdb068_5
Hours per unit	fill in the blank f7c805038fdb068_6	fill in the blank f7c805038fdb068_7	fill in the blank f7c805038fdb068_8	fill in the blank f7c805038fdb068_9	fill in the blank f7c805038fdb068_10
Hours needed	fill in the blank f7c805038fdb068_11	fill in the blank f7c805038fdb068_12	fill in the blank f7c805038fdb068_13	fill in the blank f7c805038fdb068_14	fill in the blank f7c805038fdb068_15
Cost per hour	$fill in the blank f7c805038fdb068_16	$fill in the blank f7c805038fdb068_17	$fill in the blank f7c805038fdb068_18	$fill in the blank f7c805038fdb068_19	$fill in the blank f7c805038fdb068_20
Total cost	$fill in the blank f7c805038fdb068_21	$fill in the blank f7c805038fdb068_22	$fill in the blank f7c805038fdb068_23	$fill in the blank f7c805038fdb068_24	$fill in the blank f7c805038fdb068_25

Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year following information: a. Fourth-quarter sales for 200 are 55,000 units. b. Unit sales by quarter (for 20X1) are projected as follows: The selling price is $400 per unit. All sales are credit sales. Optima collects 85% of all sales within the quarter in which they are realized; the other 15% is collected in the following quarter. There are no bad debts. c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: d. Each mass-storage unit uses 5 hours of direct labor and three units of direct materials. Laborers are paid $10 per hour, and one unit of direct materials costs $80. e. There are 65,700 units of direct materials in beginning inventory as of January 1, 20X1. At the end of each quarter, Optima plans to have 30% of the direct materials needed for next quarter's unit sales. Optima will end the year with the same amount of direct materials found in this year's beginning inventory. f. Optima buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15th and 30th of each month. g. Fixed overhead totals $1 million each quarter. Of this total, $350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. h. Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. i. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. j. Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31,200, is as follows: I. Optima will pay quarterly dividends of $300,000. At the end of the fourth quarter, $2 million of equipment will be purchased. Required: Prepare a master budget for Optima Company for each quarter of 201 and for the year in total. The following component budgets must be included: 1. Sales Budget (units and budgeted sales in thousands) Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year following information: a. Fourth-quarter sales for 200 are 55,000 units. b. Unit sales by quarter (for 20X1) are projected as follows: The selling price is $400 per unit. All sales are credit sales. Optima collects 85% of all sales within the quarter in which they are realized; the other 15% is collected in the following quarter. There are no bad debts. c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: d. Each mass-storage unit uses 5 hours of direct labor and three units of direct materials. Laborers are paid $10 per hour, and one unit of direct materials costs $80. e. There are 65,700 units of direct materials in beginning inventory as of January 1, 20X1. At the end of each quarter, Optima plans to have 30% of the direct materials needed for next quarter's unit sales. Optima will end the year with the same amount of direct materials found in this year's beginning inventory. f. Optima buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15th and 30th of each month. g. Fixed overhead totals $1 million each quarter. Of this total, $350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. h. Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. i. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. j. Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31,200, is as follows: I. Optima will pay quarterly dividends of $300,000. At the end of the fourth quarter, $2 million of equipment will be purchased. Required: Prepare a master budget for Optima Company for each quarter of 201 and for the year in total. The following component budgets must be included: 1. Sales Budget (units and budgeted sales in thousands)