Budgeted unit sales Sales price per unit Total sales dollars Sales Budget January February March Quarter 500 560 620 2,260 $170 $85,000 $170 $170 $95,200 $105,400 $170 $384,200 Beginning accounts receivable January sales February sales March sales Total cash collections Schedule of Expected Cash Collections Budgeted unit sales Add: Desired ending finished goods inventory Total needs Less: Beginning finished goods inventory Units to be produced Units to be produced * lbs per unit Pounds of raw materials needed to meet production Add: Desired ending inventory Total raw materials needed in pounds Less beginning inventory Purchases needed in pounds * $/lb Total purchase cost Beginning accounts payable January purchases February purchases March purchases Total cash disbursements Units to be produced x direct labor hours per unit Direct labor hours needed * rate per hour Total direct labor cost January February March Quarter 20,000 20,000 59,500 25,500 85,000 66,640 28,560 95,200 73,780 73,780 $273,980 Production Budget January February March Quarter 500 560 620 2,260 112 124 116 400 612 684 736 2,660 100 112 124 100 712 796 860 2,760 Direct Materials Budget January February March Quarter Schedule of Expected Cash Disbursements January February March Quarter Direct Labor Budget January February March Quarter