A B D F Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted In ome Statement CRD Company prepares monthly operating and financial budgets. Estimates of sales (in units) are made for each month of the second quarter, as follows: April units 71,000 May units 81,000 June units 86,000 July units 96,000 Production is scheduled at a level high enough to take care of current sales needs and to carry into each month 2596 of next month's sales units. The finished goods inventory at the beginning of the quarter consists of 17,000 units Direct materials are estimated at $6 per unit, direct labor at 58 per unit, and variable manufacturing overhead is estimated at 58 per unit. Total fixed manufacturing overhead is budgeted at 5510,000 per month Sales price per unit is budgeted at $70 per unit. Variable selling and administrative expenses are $18 per unit o and fixed selling and administrative expenses are $830,000 per month 1 12 Required: 13 a) Prepare a sales budget for the second quarter by month. 14 b) Prepare a Production Budget for each month with 2nd Quarter totals in the last line. 15 c) Prepare a cost of Goods Sold Budget for the second quarter by month. 16 d) Prepare a Budgeted Income Statement for the quarter by month using the multi-step.income statement format. 17 CRD Company Sales Budget Second Quarter June 2nd Quarter May C D 20 21 22 23 24 CRD Company Sales Budget For Second Quarter April May June 2nd Quarter 25 26 27 CRD Company Production Budget For Second Quarter April May June 2nd Quarter 28 29 30 31 ROUND to nearest unit (no decimais 32 Sales in units 33 Add: Desired Ending Finished Goods Inx. 34 Need nineChecen Doz 35 Total Finished goods inv. Needed 36 Deduct: Beg. Finished Goods Inventory 37 38 Units to be produced 39 Self Check (April and Juse only: 40 41 2nd Quarter CRD Company Cost of Goods Sold Budget (show each item individually) For Second Quarter June May April 42 43 44