Black Manufacturing Inc. produces control valves used in the production of oil field equipment. The control valves are sold to various gas and oil engineering companies throughout the United States. Projected sales in units for the coming year are as follows:

MONTH	UNITS
January	20,000
February	25,000
March	30,000
April	40,000
May	30,000
June	20,000
July	15,000
August	10,000
September	12,000
October	20,000
November	30,000
December	35,000

The following data pertain to production policies and manufacturing specifications followed by Black:

1. Revenue collections are estimated to be 30% in the month of the sale, 60% in the month following the sale, 10% in the second month after the sale.
2. The desired ending inventory for each month is 70% of the next months sales. Finished goods beginning inventory is consistent with this policy.
3. The data on materials used are as follows:

Direct Material	Per unit usage	Unit cost
Part 714	5	$4.00

Inventory policy dictates that sufficient materials be on hand at the beginning of the month to produce 50% of the next months estimated production. Raw materials inventory is consistent with this policy.

1. The direct labor used per unit of output is two hours at an expected cost of $15.00 per hour.
2. The unit selling price is $90.00 per valve.

REQUIRED: Prepare a monthly operating budget for the May with the following schedules:

1. Revenue Budget, including Collections, and Accounts Receivable
2. Production Budget
3. Direct Materials Purchases Budget
4. Direct Labor Budget