Alliaces Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturing and aircraft maintenance facilities. Projected sales in units for the accessing five months follows: January 40, 000 February 50, 000 March 60, 000 April 60, 000 May 62, 000 The following data pertain to production and manufacturing specifications followed by Alliaces Manufacturing. Finished goods inventory on January 1 is 32, 000 units, each costing $166, .06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows. Inventory policy distant that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of output is three hours. The average direct labor cost per hour is $14.25. Overhead each month is estimated using a flexible budget formula. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. The unit selling price of the subassembly is $205. All sales and purchases are for cash. The cash balance on January 1 equals $400, 000. The firm requires a minimum ending balance of $50, 000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due. The interest rate is 12% per annum. No money is owned at the beginning of January. Required: Prepare a monthly operating budget for the first quarter with the following schedules. Sales Budget Production Budget Direct Materials Purchases Budget Alliaces Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturing and aircraft maintenance facilities. Projected sales in units for the accessing five months follows: January 40, 000 February 50, 000 March 60, 000 April 60, 000 May 62, 000 The following data pertain to production and manufacturing specifications followed by Alliaces Manufacturing. Finished goods inventory on January 1 is 32, 000 units, each costing $166, .06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows. Inventory policy distant that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of output is three hours. The average direct labor cost per hour is $14.25. Overhead each month is estimated using a flexible budget formula. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. The unit selling price of the subassembly is $205. All sales and purchases are for cash. The cash balance on January 1 equals $400, 000. The firm requires a minimum ending balance of $50, 000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due. The interest rate is 12% per annum. No money is owned at the beginning of January. Required: Prepare a monthly operating budget for the first quarter with the following schedules. Sales Budget Production Budget Direct Materials Purchases Budget