+ Add to 3 S Snowbird Inc. (Showbird) manufactures and sells one model of sleds Broward's accountant gathered the following information to prepare the budget for 2020 1st quarter Projected sales 2,000 units 2nd quarter 1.800 units 3rd quarter 1,000 Units 4th quarter 3,500 units Snowbird has a policy of maintaining finished goods inventory at the end of each quarter equal to 5% of the following quarter's projected sales. There were 150 sleds in finished goods inventory at the start of 2020, with a total cost of $45,000. Materials and labour requirements for the sleds are: Direct materials Four board-metres per sled Direct labour hours Three hours per sled Machine hours Two hours per sled Direct materials inventory on the first day of 2020 was 1,000 board-metres. Direct materials were originally purchased at $33 per board-metre. Prices have now risen to $34 per board-metre. The desired ending materials inventory is 10% of the following quarter's projected production needs. Snowbird's direct labourers are paid $16 per hour. Variable manufacturing overhead is allocated at the rate of $15 per direct labour hour. Fixed manufacturing overhead costs are budgeted at $186,240 for 2020. Snowbird uses first-in, first-out to account for its inventory flow. Required: Prepare the following budgets and schedules as part of the master budget for the first quarter of 2020: a) Production budget (2 marks) b) Direct materials purchase budget (5 marks) c) Direct labour budget (2 marks) d) Manufacturing overhead budget (1 mark) e) Ending finished goods inventory budget (3 marks)