Barndt Manufacturing Company makes two products identified as A1 and B2. Selected budgetary data for 2013 follow:

Products Standards	A1	B2
RM1	10 pounds	8 pounds
RM2	0	4 pounds
RM3	2 pounds	1 pound
Direct Labor	2 hours	3 hours

Other Production Information	A1	B2
Sale Price	$150	$220
Sales (units)	12000	9000
Estimated beginning Inventory (units)	400	150
Desired ending inventory (units)	300	200

	RM1	RM2	RM3
Cost per pound	$2.00	$2.50	$0.50
Estimated beginning inventory (pounds)	3000	1500	1000
Desired ending inventory (pounds)	4000	1000	1500

The average wage rate is expected to be $25 per hour in 2013. Barndt uses direct labor-hours to apply overhead. Each year the company determines the overhead application rate for the year based on budgeted output for the year. The company maintains negligible work in process inventory and expects the cost per unit for both beginning and ending finished product inventories to be identical.

Factory Overhead Information
Indirect materials; variable	$10000
Misc. supplies & tools; variables	5000
Indirect labor; variable	40000
Supervision;fixed	120000
Payroll taxes and fringe benefits; variable	250000
Maintenance costs; fixed	20000
Maintenance costs; variable	10080
Depreciation; fixed	71330
Heat, light and power; fixed	43420
Heat, light and power; variable	11000
Total	$580830

SGA Information
Advertising	$60000
Sales salaries	200000
Travel and entertainment	60000
Depreciation; warehouse	5000
Office salaries	60000
Executive Salaries	250000
Supplies	4000
Depreciation; office	6000
Total	$645000

All sales are made on credit and management estimates that 5% of credit sales are uncollectible. A provision for bad debt, under the allowance method, is considered an SGA expense. The collection pattern for collectible credit sales is 60% collected in the month of sale and the remainder in the month following the month of sale. Credit sales for December, 2012 and 2013 were $290000 and $360000 respectively.

All raw material purchases are made on account; 25% is paid in the month of purchase and the remainder is paid in the month following the month of purchase. Raw materials purchases fo December, 2012 and 2013 were $46000 and $42000, respectively.

The company pays direct labor, factory overheads, and selling, general and administrative expenses in the periods incurred.

Forecasted income taxes are presumed paid in December of each year.

Company policy requires that a minimum cash balance of $50000 be maintained at all times. Repayments of the company line of credit are made in $10000 increments. The company owed $750000 on the line of credit at December 31, 2012. The cash balance at December 31, 2012 was $50000.

Company plans 2013 call for the purchase of new equipment costing $200000.

Barndt's effective income tax rate is 40%.

Required: Prepare the following schedules or statements for 2013:

1) Sales Budget

2) Production Budget

3) Direct Materials purchases budget (units & dollars)

4) Direct Labor Budget

5) Factory Overhead Budget'

6) Cost of Goods Sold & ending finished goods inventory budgets

7) Selling & administrative budget

8) Budgeted Income Statement

9) Cash Budget