Current Attempt in Progress

Bonita Company is preparing its master budget for $2025.$ Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total $900,000$ units. Quarterly sales are $21\%,27\%,27\%,$ and $25\%,$ respectively. The unit selling price is expected to be $$38$ for the first three quarters and $$47$ beginning in the fourth quarter. Sales in the first quarter of $2026$ are expected to be $15\%$ higher than the budgeted sales for the first quarter of $2025.$

Production. Management desires to maintain the ending finished goods inventories at $20\%$ of the next quarter's budgeted sales volume.

Direct materials. Each unit requires $2$ pounds of raw materials at a cost of $$11$ per pound. Management desires to maintain raw materials inventories at $10\%$ of the next quarter's production requirements. Assume the production requirements for first quarter of $2026$ are $405,000$ pounds.

Prepare the sales, production, and direct materials budgets by quarters for $2025.$

BONITA COMPANY

Sales Budget

Quarter

$1$

$2q,3$

$4$

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