Create an operating budget for the first quarter of a new business month #1 $65,000 Month #2 $97,500 month #3 $130,000, month #4 $110,500 These sales are based on selling one product with a selling price of $6.50 Create a Production Budget based on Units (not dollars). Desired Finished Goods Ending Inventory each month is 10% of the next months projected sales. (Use the Finished Goods Ending Inventory amount for the previous year for the Beginning Finished Goods Inventory to start this year).

Create a Production Budget based on Units (not dollars). Desired Finished Goods Ending Inventory each month is 10% of the next months projected sales. (Use the Finished Goods Ending Inventory amount for the previous year for the Beginning Finished Goods Inventory to start this year).

Create a Direct Materials Purchase Budget

• Each unit produced requires 10# of direct materials at a cost of $0.08 per pound.
• Desired Ending Direct Materials Inventory is 10% of the next months material requirements.

• Create a Direct Labor Budget

• Direct Labor Costs are $15/hour
• Each unit requires 5 minutes of labor

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