Chapter 22 Budgetary Planning Comprehensive Assignment NOTE: Your solution should be submitted in Canvas. An Excel template for this problem is provided in Canvas. You may prepare your solution using Excel, Word, or a hand-written paper document that can be scanned and submitted as a .pdf document. Maximum points will be awarded for solutions that are legible and clearly labeled. Less points will be awarded for solutions that are confusing and hard to read. Please include your name and student ID on your solution. Company Information: Chattanooga Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales The Company likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Recervable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts recervable on December 31, 2019, totaled $183,780 Instructions For the first quarter of 2020 , do the following. (a) Prepare a sales budget. (b) Prepare a production budget (c) Prepare a direct materials budget. (Round to nearest dollar) (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) (e) Prepare a manufacturing overhead budget. (Round amounts to the nearest dollar:) (f) Prepare a selling and administrative budget. Direct Materials Direct materials cost 75 cents per pound. Two pounds of direct materials are required to produce each unit. Chattanooga Corporation likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31,2019 , totaled 11,295 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31,2019 , totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour