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Al-Nada Company is preparing its master budget for 2016. Relevant datu pertaining to its sales, production, and direct materials budgets are as follows: Sales 1.

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Al-Nada Company is preparing its master budget for 2016. Relevant datu pertaining to its sales, production, and direct materials budgets are as follows: Sales 1. Sales for the year are expected total 1.500,000 units Quarterly sales are 20% 25% 25% and 50% respectively. The sales price is expected to be 560 per unit for the first three quarters and S65 per unit beginning in the fourth quarter Sales in the first quarter of 2010 are expected to be 109 lugher than the budgeted sales for the first quarter of 2011, 2. Production Management desires to maintain ending finished goods investories at 25% of next quarter's budgeted sales volume, 3. Direct materials Fach unit requires 4 pounds of raw materials at a cost of S6 per pound Management desires to maintain raw materials inventones 5% of the neut quarter's production requirements. Assume the production requirements for the first quarter of 2010 are 950,000 pounds. 4. Direct labor hours are determined from the production budget. Al-Kamal Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $13. 5. Al-Kamal Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor ber indirect materiale $1.50, indirect labor $2.00, utilities s0.50, and maintenance $0.40. Thus, for the 6.500 direct labor hours to produce 3.100 units, budgeted indirect materials are $6.000 (6,500 $1.50). and budgeted indirect laboris 57,600 (6,500 x 2.00). Al-Kamal also recognizes that some maintenance is fixed. The amounts reported for the costs are assumed 6. Variable expense rates per unit of sales are sales commission $2.50 and freight-out SI Variable expenses per quarter are based on the unit sales from the sales budget. Al Kamal expects sales in the first quarter to be 4.000 units. Fixed expenses are based on assumed data 7. Al-Nada company has the following information Company sold 15.000 units of product Sale price is so per unit. Interest expense is expected to be 510), and Income taxes are estimated to be $12,000 Cost of One Rightride Cost Element Illustration Quantity Unit Cout Total direct materials 20.7 2 Pounds $8.00 5 4.00 20-9 2 Hours $10.00 S 20.00 Durext labor Manufacturing Overhead 20-10 2 Hours $8.00 $ 16,00 Total Unit Cose $44.00 Cost of Goods Sold - 15000X 560-5560.00 Requirements A Prepare the sales budget by quarters for 2016 B. Prepare the production budget by quarters for 2016 C. Prepare the direct materials budget by quarters for 2016 D. Prepare the direct Labor budget by quarters for 2016 E Prepare the Manufacturing Overhead budget by quarters for 2016 F. Prepare a selling and administrative expense budget by quarters for 2016 G. Prepare income statement budget

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