assumptions: each cake consumes 10 ounces of materials at a cost of 0.5 ounces. plan purchases so that the ending materials inventory balance equals 3% of the material to be used in the next quarter.

prepares, by quarter, the direct materials usage budget in ounces (schedule 3a).

prepares by quarter, the direct materials purchase budget in dollars (schedule 3b).

prepares the direct labor budget assuming that each will take 0.10 of an hour (6 minutes) and the average rate of pay for employees is 10.00 per hour.

Topic: Master budget Company xxx manufactures banana biscuits. Its budget is detailed on a quarterly basis. Projected sales for the year 2x22 are as follows: Trimester First (january, february, march). Second (april, may, june) Third (july, august, september) Four (october, november, december) Sales forecast (in units) 15,000 20,000 27,000 23,000 Schedule 1: Revenues Budget for the year ending December 2022 Period Selling Price Total Revenues Units Quarterly 15,000 $ 5.00 $ 75,000.00 20,000 S 5.00 $ 100,000.00 Quarterly 2 Quarterly 3 Quarterly 27,000 5.00 $ 135,000.00 23,000 $ 5.00 $ 115,000.00 425,000.00 Total S Schedule 2: Production Budget (in units) For the year ending December 31, 2022 Quarterly Quarterly 2 Quarterly 3 Quarterly 4 Budgeted unit sales schedule 1 15,000 20,000 27,000 23,000 Add Target ending Finished good Inventory 750 1000 1350 1150 Total required units 15,750 21,000 28,350 24,150 Deduct beginning finished goods inventory 900 750 1000 1350 Units of finished goods to be produced 14,850 20,250 27,350 22,800