Carter Inc has gathered the following budgeting information for next year and has asked you to prepare their master budget a Sales for the final quarter of the prior year total 1100 units. Expected sales in units) for the current year are: 990 (Quarter 1), 660 (Quarter 2), 880 (Quarter 3), and 880 (Quarter 4). Sales for the first quarter of the following year total 1,320 units. The selling price is $690 per unit in the first three quarters of the year, and $720 per unit in the final quarter b runit, Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 495 units, which complies with the policy. The product's manufacturing cost is $183 peru including per unit costs of $104 for materials (8 lbs. at $13 per lb.). $54 for direct labor (3 hours * $18 direct labor rate per hour), $21 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $5,700; factory utilities, $7,200, and other factory overhead of $1.400. Company policy also calls for a given quarter's ending raw materials inventory to equal 30% of next quarter's expected materials needed for production. The prior year-end inventory is 1.980 lbs of materials, which complies with the policy. The company expects to have 3,168 lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 14% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $65,000 in the first three quarters of the year, and $69,000 in the final quarter. e. Quarterly general and administrative expenses include $28,000 administrative salaries, reni expense of $17,000 per quarter, insurance expense of $14,000 per quarter, straight- line depreciation of $14,000 per quarter, and 1% monthly interest on the $200,000 long-term note payable (12% annually). f Income taxes will be assessed at 25%, and are paid in the quarter incurred. Production Direct Mtls Budget Budget Cost of Goods Sold Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Sales Budget Income Statement Requirement: Prepare the Sales Budget for Carter Inc.. Sales for the final quarter of the prior year total 1,100 units. sales (in units) for the current year are: 990 (Quarter 1), 660 (Quarter 2), 880 (Quarter 3), and 880 (Quarter 4). SE the first quarter of the following year total 1,320 units. The selling price is $690 per unit in the first three quarters o year, and $720 per unit in the final quarter. Sh Carter Inc. Sales Budget 2018 First Qtr. Second Qtr. Third Qur. Fourth Qur. Total Budgeted sales (units) Total budgeted sales (dollars) Sales Budget Production Budget > Sales Budget Production Budget Direct Mtis Budget Direct Lbr Budget Factory OH Selling Exp Budget Budget Admin Exp Budget Cost of Goods Sold Income Statement Requirement: Prepare the production budget for Carter Inc.. Company policy calls for a given quarter's ending finished goods inves equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 495 which complies with the policy. Expected sales (in units) for the current year are: 990 (Quarter 1), 560 (Quarter 2), 880 (Quarter 3), and 880 (Quarter 4). Sales for the first quarter of the following year total 1,320 units. Carter Inc. Production Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qur. Fourth Qtr. Total Ratio of inventory to future sales Budgeted ending inventory (units) Required units of available production Units to be produced Production Budget Sales Budget Direct Mtis Budget Direct Lbr Budget Factory OH Budget Selling Exp Budget Admin Exp Budget Income Statement Cost of Goods Sold Requirement Prepare the Direct Materials Budget for Carter Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 30% of next quarter's expected m needed for production. The prior year-end inventory is 1,980 lbs of materials, which complies with the policy. The con expects to have 3,168 lbs. of materials in inventory at year-end. The product's manufacturing cost is $183 per unit, in per unit costs of $104 for materials (8 lbs. at $13 per Ib.), $54 for direct labor (3 hours x $18 direct labor rate per h for variable overhead, and $4 for fixed overhead. s Carter Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Total Fourth Qtr. Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Total cost of direct materials purchases Sales Budget Production Budget Direct Mels Budget Direct Lbr Budget Factory OH Selling Exp Admin Exp Budget Budget Budget Cost of Income Goods Sold Statement Requirement Prepare the Direct Labor Budget for Carter Inc.. The product's manufacturing cost is $183 per unit, in unit costs of $104 for materials (8 lbs. at $13 per Ib.), $54 for direct labor (3 hours x $18 direct labor rate per hour) variable overhead, and $4 for fixed overhead. Carter Inc. Direct Labor Budget For the year ended December 31, 2018 First Qtr. Total Second Qtr. Third Qur. Fourth Qui Total direct labor hours needed Total budgeted direct labor cost (dollars) Production Budget Direct Mtls Budget Sales Budget Direct Lbr Budget Factory OH Budget Selling Exp Budget Admin Exp Budget Cost of Goods Sold Income Statement Requirement Prepare the Factory Overhead Budget for Carter Inc.. The product's manufacturing cost is $183 per un including per unit costs of $104 for materials (8 lbs. at $13 per lb.), $54 for direct labor (3 hours x $18 direct labori hour), $21 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly through year, consist of depreciation on production equipment, $5,700; factory utilities, $7,200, and other factory overhead o S Carter Inc. Factory Overhead Budget For the year ended December 31, 2018 First Qtr. Total Second Qur. Third Qtr. Fourth Qtr. Budgeted variable overhead Budgeted total overhead