5 Annual * The budgeting process begins with a projection of sales Management provides the following estimates for 2021 and the first two quarters of 2022: 6 Projected Sales in Units at $60 Selling Price: 7 2021 2022 8 01 7,000 7,000 9 02 8,000 8,000 10 03 12,000 11 04 16,000 12 13 Prepare Budgets for Sales, Production, Direct Materials and Direct Labor for 2021, using the following information and templates: 14 15 16 17 Sales Budget 01 02 03 04 18 Units 19 Price 20 Sales $960,000 21 22 23 24 25 Production Budget Inputs: 26 Beginning inventory Q1: 7,000 Units 27 Desired ending inventory - 20% of the following quarter's sales 28 Production Budget 29 Sales 01 02 04 30 31 Ending Inv 32 Req Units 33 Beg Inv 34 Req Production 35 36 37 38 Direct Materials Inputs: 39 Each unit requires 2.3 pounds costing $1.45 per pound 40 41 DM Budget 01 03 04 Sheet1 + 23 Annual 44,400 02 Annual Ready A B C D E G 01 Q2 03 Q4 Annual 29,440 S42,688 Q1 Q2 03 04 Annual 41 DM Budget 42 Units to produce 43 DM per unit 44 Total pounds DM 45 +Binding 46 -Beg Ins 47 DM Required 48 Cost per pound 49 Total Cost of DM 50 si 52 53 Direct Labor Inputs: 54 Each unit requires 45 minutes at a rate of S17 per hour 55 DL Budget 56 57 Units Produced 58 DUI per unit 59 Total DLH required 60 Labor Cost per Hir 61 Total DL Cost 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 $91,800