Company roasts and sells high quality certified sustainable coffee beans. The final one pound bags of roasted whole coffee beans has two direct materials coffee beans and packaging. GBCoffee is preparing budgets for the fourth quarter ending December 31, 2019. For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter.

1. The previous years sales for the corresponding period were:

October 50,000 bags

November 55,000 bags

December 90,000 bags

January 75,000 bags

February 60,000 bags

The company expects the above volume of coffee sales to increase by 8% for the period October 2019 February 2020. The budgeted selling price for 2019 is $19.50 per bag. The company expects 35% of its sales to be cash (COD) sales. The remaining 65% of sales will be made on credit. Prepare a Sales Budget for GBCoffee.

2. The company desires to have finished goods inventory on hand at the end of each month equal to 10 percent of the following month's budgeted unit sales. On September 30, 2019, GBCoffee expects to have 5,350 bags of roasted coffee on hand. Prepare a Production budget.

3. The final product (bags of roast coffee) require two direct materials: green coffee beans and packaging material. 1.25 pounds of green coffee beans are required for each one pound bag of roasted coffee beans. During the roasting process residual moisture, some oils, and chaff (the silver skin) are removed, which lowers the weight of the final product. Management desires to have materials on hand (i.e., green beans) at the end of each month equal to 20 percent of the following month's green coffee bean needs. The beginning materials inventory, October 2019, is expected to be 13,500 pounds. The green coffee beans cost $7.00 per pound.

Packaging material is purchased by the roll and 100 coffee bags are produced from each roll. The packaging material is made from biodegradable, organic plant fiber that extends the shelf life of the coffee beans while preserving its freshness. Management desires to have packaging on hand at the end of each month equal to 10 percent of the following month's production needs. The beginning inventory of packaging (i.e., rolls of packaging material), October 2019, is expected to be 54 rolls. Packaging is expected to cost $24 per roll.

Note, budgeted production in January is required in order to complete the direct materials budget for December. Also, use the @ROUNDUP function to round up to the nearest whole number the pounds of green beans and number of rolls of packaging material to purchase. Prepare a Direct Materials budget. Also because two direct materials are required for production green beans and rolls of packaging material - you will need a separate schedule for each direct material.

4. Each bag of coffee produced requires 0.25 hours of direct labor. GBCoffee pre-washes the green beans and then uses a collection of hand-cranked coffee roasters to achieve the perfect old school roast. Each hour of direct labor costs the company $20. Prepare a Direct Labor budget. with assumptions