During July of the current year, the management of Geniune Herb INC, asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be less 1,500 cases at $100 per case for August. Inventory planning information is provided as follows:

there was negligible work in progress inventory assumed for either the beginning or end of the month; Thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from Janury.

A.) Prepare the August production budget

B.) Prepare the August direct materials purchases budget

C.) Prepare the August direct labor cost budget. (Round hours required for profuction to nearest hour)

D.) Prepare the August direct labor cost budget. If an amount box does not require an entry, just leave

blank please.

E.) Prepare the August Budgeted income statement including selling expenses.

NOTE FOR E - because you are not required to prepare a cost of goods sold budget, the cost of goods sold calculations will be part of the budgeted income statement.

break even = 350 cases

contribution margin= $55.60

Cases Cost 300 $12,000 Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 175 7,000 Materials Inventory: Oils Cream Base (oz.) Bottles (bottles) (oz.) 250 290 600 Estimated materials inventory, August 1 Desired materials inventory, August 31 1,000 360 240 2. Determine the contribution margin per case. $55.60 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 1 Total fixed costs: 2 $14,000.00 3 Facility lease Equipment depreciation Supplies 4,300.00 4 660.00 5 Utilities 500.00 6 $19,460.00