Collins 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 1,400 units. Expected sales (in units) for the current year are: 1,260 (Quarter 1), 840 (Quarter 2), 1,120 (Quarter 3), and 1,120 (Quarter 4). Sales for the first quarter of the following year total 1,680 units. The selling price is $470 per unit in the first three quarters of the year, and $490 per unit in the final quarter.
b.	Company policy calls for a given quarters ending finished goods inventory to equal 50% of the next quarters expected unit sales. The finished goods inventory at the end of the prior year is 630 units, which complies with the policy. The products manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $7,300; factory utilities, $9,100, and other factory overhead of $1,800.
c.	Company policy also calls for a given quarters ending raw materials inventory to equal 50% of next quarters expected materials needed for production. The prior year-end inventory is 4,200 lbs of materials, which complies with the policy. The company expects to have 6,720 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 12% of sales and are paid in the quarter of the sales. The sales managers quarterly salary will be $48,000 in the first three quarters of the year, and $51,000 in the final quarter.
e.	Quarterly general and administrative expenses include $20,000 administrative salaries, rent expense of $12,000 per quarter, insurance expense of $10,000 per quarter, straight-line depreciation of $10,000 per quarter, and 1% monthly interest on the $350,000 long-term note payable (12% annually).
f.	Income taxes will be assessed at 20%, and are paid in the quarter incurred

Production Direct MtlsDirect Lbr Factory OH Selling Exp Admin Exp Budget Sales Budget; Budget Cost of Income Budget Budget Budget Budget Goods Sold Statement Requirement: Prepare the Sales Budget for Collins Inc.. Sales for the final quarter of the prior year total 1,400 units. Expected sales (in units) for the current year are: 1,260 (Quarter 1), 840 (Quarter 2), 1,120 (Quarter 3), and 1,120 (Quarter 4). Sales for the first quarter of the following year total 1,680 units. The selling price is $470 per unit in the first three quarters of the year, and $490 per unit in the final quarter. Show less Collins Inc. Sales Budget 2018 First Qtr Second Qtr Third Qt Fourth Qtr Total 840 1,120 Budgeted sales (units) Selling price per unit Total budgeted sales (dollars) 1,260 1,120 470 $ 592,200 394,800 $ 526,400 548,800$ 2,062,200 470S 470 $ 490 Sales Budget Production Budget> Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Budget Income Sales Budget Budget Budget Budget Budget Budget Goods Sold Statement Requirement: Prepare the production budget for Collins Inc.. 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 630 units, which complies with the policy. Expected sales (in units) for the current year are: 1,260 (Quarter 1), 840 (Quarter 2), 1,120 (Quarter 3), and 1,120 (Quarter 4). Sales for the first quarter of the following year total 1,680 units Show less Collins Inc. Production Budget For the year ended December 31, 2018 First Qtr Second Qtr Third Qtr Fourth Qtr Total Next qtr's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted sales (units) Required units of available production Budgeted beginning inventory (units) Units to be produced 840 50% 420 1,260 1,680 630 1,050 1,120 60% 560 840 1,400 420 980 1,120 60% 560 1,120 1,680 560 1,120 1,680 60% 840 1,120 1,960 560 1,400 4,550 K Sales Budget Direct Mtls Budget> Sales Budget Budget Production Direct Mtls Direct Lbr Factory OH Seling Exp Admin Exp Cost of Income Budget Budget Budget Budget BudgetGoods Sold Statement Requirement Prepare the Direct Materials Budget for Collins Inc. Company Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 4,200 lbs of materials, which complies with the policy. The company expects to have 6,720 lbs. of materials in inventory at year-end. The product's manufacturing cost is $175 per uni, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours x $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Show less Collins Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr Second Qtr. Third Qtr Fourth Qtr Total 1,050 8.0 8,400 3,920 12,320 4,200 980 8.0 7,840 4,480 12,320 1,120 8.0 8,960 5,600 14,560 1,400 8.0 11,200 670 11,870 Materials needed for production (pounds) terials requirements per unit Total materials requirements (pounds) udgeted beginning inventory (units) Materials to be purchased (pounds) 12.00 $ 12.00 $ 12.00 aterial price per pound Total cost of direct materials purchases 12.00 Production Budget Direct Lbr Budget Sales Budget Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost ofIncome Budget BudgetBudgetBudget Budget Budget Goods Sold Statement Requirement Prepare the Direct Labor Budget for Collins Inc.. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Collins Inc. Direct Labor Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr Fourth Qtr Total 1,050 980 1,120 1,400 4,550 Total direct labor hours needed Total budgeted direct labor cost (dollars) K Direct Mtls Budget Factory OH Budget Sales Budget Budget Production Direct Mtls Direct Lbr Factory OHSelling Exp Admin Exp Cost of Income Budget Budget Budget Budget BudgetGoods Sold Statement Requirement Prepare the Factory Overhead Budget for Collins Inc.. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $7,300; factory utilities, $9,100, and other factory overhead of $1,800 Show less Collins Inc. Factory Overhead Budget For the year ended December 31, 2018 First Qtr Second Qtr Third Qtr Fourth Qtr Total 1,050 980 1,120 1,400 4,550 Budgeted variable overhead Budgeted total overhead Direct Lbr Budget Selling Exp Budget > Sales Budget Budget Production Direct Mtls Direct Lbr Factory OHSelling Exp Admin Exp Cost of Income Budget Budget Budget Budget BudgetGoods Sold Statement Requirement Prepare the Factory Overhead Budget for Collins Inc.. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $7,300; factory utilities, $9,100, and other factory overhead of $1,800 Show less Collins Inc. Factory Overhead Budget For the year ended December 31, 2018 First Qtr Second Qtr Third Qtr Fourth Qtr Total 1,050 980 1,120 1,400 4,550 Budgeted variable overhead Budgeted total overhead Direct Lbr Budget Selling Exp Budget > rect Mtls Direct Lbr Factory OH Selling Exp Adi x Cost of Income Sales Budget ProductionD BudgetBudget Budget BudgetBudget Budget Goods SoldStatement Requirement Prepare the Administrative Expense Budget for Collins Inc. Quarterly general and administrative expenses include $20,000 administrative salaries, rent expense of $12,000 per quarter, insurance expense of $10,000 per quarter, straight-line depreciation of $10,000 per quarter, and 1% monthly interest on the $350,000 long-term note payable (390 quarterly) Show lessA Collins Ino General and Administrative Budget For the year ended December 31, 2018 First Qtr. Second Qtr.Third Qtr. Fourth Qtr Total Total budgeted general and administrative expenses Selling Exp Budget Cost of Goods Sold> rect Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Budget Income Sales Budget Production D Budget Budget Budget Budget BudgetGoods SoldStatement Requirement Using information from the sales budget and the following information, calculate the budgeted cost of goods sold for Collins Inc. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $7,300; factory utilities, $9,100, and other factory overhead of $1,800 Show lessA Collins Inc. Cost of Goods Sold Budget For the year ended December 31, 2018 First Qtr Second Qtr.Third Qtr Fourth Qtr Total 1,260 840 1,120 1,120 4,340 Cost of goods sold Admin Exp Budget Income Statement> Sales Budget Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Income Budget Budget Budget BudgetBudgetBudget Goods Sold Statement Requirement Prepare the Budgeted Income Statement for the year for Collins Inc. Interest on the $350,000 long-term note payable is 190 per month (12% annually). Income taxes will be assessed at 20%, and are paid in the quarter incurred. Collins Inc. Budgeted Income Statement For the year ended December 31, 2018 Sales ost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Interest expense otaoing expenses ncome before income taxes ncome tax expense et income KCost of Goods Sold Income Statement