Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: a. Estimated sales at $125 per unit: January 25,000 units February 30,000 units March 45,000 units April 50,000 units b. Estimated finished goods inventories: January 1 2,000 units January 31 10% of next month's February 28 March 31 10% of next month's sales 10% of next month's sales c. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: January 1 1,000 lbs. January 31 1,500 February 28 2,000 March 31 2,500 e. Manufacturing costs: Direct materials (0.8 lb. per unit x $15 per lb.) Direct labor (2.5 hrs. per unit x $24 per hr.) Variable factory overhead ($1.20 per direct labor hour) Fixed factory overhead ($200,000 per month, allocated using 40,000 units) Total per-unit manufacturing costs f. Selling expenses: Per Unit $12 60 3 Variable selling expenses Fixed seling expenses $150,000 Administrative expenses (all fixed costs) $400,000 1. Prepare a sales budget for March. Bellaire Inc. Sales Budget For the First Quarter Ending March 3 January Estimated units sold Selling price per unit February March Total budgeted sales 2. Prepare a production budget for March. Bellaire Inc. Production Budget For the First Quarter Ending March 3 January February First Quarter March First Quarter