Budgeted income statement and supporting budgets for three months Newport Inc, gathered the following data for use in developing the budgets for the first quarter June, July, August) of its fiscal year: a. Estimated sales at $36 per unit: June 300,000 units July 400,000 units August 500,000 units September 500,000 units b. Estimated finished goods inventories: May 31 16,000 units June 30 5% of next month's sales July 31 5% of next month's sales August 31 5% of next month's sales C. Work in process inventoriespare estimated to be insignificant (zero), d. Estimated direct materials inventories: May 31 35,000 pounds 40,000 pounds July 31 45,000 pounds August 31 50,000 pounds June 30 e. Manufacturing costs: Per Unit $6.00 10.00 Direct materials (1.5 lbs. per unit x $4 per lb.) Direct labor (0.4 hr. per unit * $25 per hr.) Variable factory overhead ($4 per direct labor hour) Fixed factory overhead ($1,200,000 per month allocated using 500,000 units) Total per-unit manufacturing costs 1.60 2.40 $20.00 f. Selling expenses: Variable selling expenses Fixed selling expenses Administrative expenses (all fixed costs) $3 per unit $800,000 $550,000 1. Prepare a sales budget for August. Newport Inc. Sales Budget For the First Quarter Ending August 31 June July August Estimated units sold Selling price per unit x$ First Quarter x$ Total budgeted sales 2. Prepare a production budget for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Newport Inc. Production Budget For the First Quarter Ending August 31 June August First Quarter July Total units available for sale Total units to be produced 3. Prepare a direct materials purchases budget for August. For those boxes in which you must enter subtracted or negative numbers use a minus sign Newport Inc Direct Materials Purchases Budget For the First Quarter Ending August 31 June July August First Quarter Units to be produced Materials required per unit jos Tos los Jos Materials required for production os jos os First Quarter Newport Inc. Direct Materials Purchases Budget For the First Quarter Ending August 31 June July August Units to be produced Materials required per unit Ibs. lbs. lbs. Materials required for production bs. lbs. lbs. Ibs. lbs. bs. lbs. lbs. Jos. Total materials available for use bs. lbs. lbs. lbs. lbs. bs. bs lbs. lbs. bs. bs. bs Total materials to be purchased Cost per pound Cost of direct materials to be purchased XS XS XS 4. Prepare a direct labor cost budget for August. Newport Inc. Direct Labor Cost Budget For the First Quarter Ending August 31 June July August First Quarter hr. hr. hr. hr. hrs. hrs. hrs. hrs. x$ x$ x$ 5. Prepare a factory overhead cost budget for August. Newport Inc. Factory Overhead Cost Budget For the First Quarter Ending August 31 June July August Variable factory overhead: First Quarter hrs. hrs. hrs. hrs. X$ X$ Fixed factory overhead: Total factory overhead cost 7. Prepare a selling and administrative expenses budget for August. Enter all amounts as positive number Newport Inc. Selling and Administrative Expenses Budget For the First Quarter Ending August 31 June July August First Quarter Selling expenses: X$ Total variable selling expenses Total selling expenses Administrative expenses: Total selling and administrative expenses