Carter Company, a manufacturer, predicts sales of $5,600$ units in January, $5,200$ units in February, $7,200$ units in March,

and $7,900$ units in April. The company wants each month's ending finished goods inventory to equal $40\%$ of next month's

predicted unit sales. Beginning finished goods inventory for January is $2,240$ units. Each unit of finished goods requires

$0\mathrm{.}40$ pounds of direct materials at a cost of $$10\mathrm{.}00$ per pound, and $3\mathrm{.}0$ hours of direct labor at a cost of $$20$ per hour.

Additionally, the company wants each month's ending raw materials inventory to equal $30\%$ of next month's budgeted

production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget.

Carter Company

Budget Assumptions

For the months of January, February, and March $2024$