BACKGROUND INFORMATION North Pole Co. manufactures cross country skis for the outdoor enthusiasts at a price of $120 per pair. Sales peak during the winter months and for this year are estimated as follows: Forecasted Unit Sales: December 1,200 January 1,550 February 1,350 March 800 April 400 Cash Collections: From past experience, North Pole Co. has learned that 25% of their sales are collected in the month of the sale, and 75% of the remaining sales are collected in the month following the sale. Inventory: As of December 31, 2013, the ending inventory for direct materials was 10,000 grams of fibreglass and at the end of each month, North Pole Co. requies an ending inventory of 5% of next month's production needs. For March 31, 2014, the desired ending inventory for direct materials is 7,000 grams of material. For completed products, an ending inventory of 10% of next month's sales is required by North Pole Co. and the ending finished products inventory on December 31, 2013 was 155 units. Other Information: For materials used in the production of skis, each pair of skis requires 300g of fibreglass at a price of $.15 per gram. When the materials are purchased, 60% are paid in the month of the purchase, while the remaining 40% are paid in the following month. As of December 31, 2013, the account payable balance is $11,000. To produce each pair of skis, it requires 0.6 hours of man time with a wage rate of $11.

REQUIRED Must prepare the following for quarter 1 of 2014 (January to March): 1. Sales Budget 2. Schedule of Cash Collections for the quarter 3. Production Budget 3. Direct Materials Budget 5. Cash Disbursements Budget 6. Direct Labour budget On the following tabs, fill in the missing information in the shaded cells. Watch for any additional instructions at the bottom of the tables.