Zordich lnc- has gathered the following budgeting information for next year and has asked you to prepdre their master budget. Sales for the final quarter of the prior year tote} 2,900 units. Expected Seles tn units) for the current year are: 2610 (Quarter 1), 1,740 (Quarter 2), 2,320 (Quarter 3), and 2,320 (Quarter 4}. Sales for the first quarter of the following year total 3,480 units. The selling price is $620 per unit in the first three quarters of the year, and $650 per unit in the final quarter. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of tie next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,305 units, which complies with the policy. The product's manufacturing cost is $199 per unit, ire men t: prepare the production budget for Zordich Inc.. Company policy calls for a given quarters ending finished goods inventory to equal of the nut quarter's unit The finished goods at the end of the is 1,305 Which complies With the policy. Expected sales (in units) for the current year are: 2,610 (Quarter 1), 1,740 (Quarter 2), 2,320 (Quarter 3), and 2,320 (Quarter 4). Sales for the first quarter of the following total 3,480 units. Production Budget FM year ended 31, 20' 8 Ratio of inventory to Mure Sales including per unit costs of $120 for materials (8 lbs. at $15 per lb.), $54 for direct labor (3 hours x inventory d. e. f. $18 direct labor rate per hour), $21 for vorioble overhead, ond $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $15,100; factory utilities, $18,900, and other factory overhead of $3,700. Company policy also cells for a given quarter's ending raw materials inventory to equal 60% Of next quarter's expected materials needed for production. The prior year-end inventory is 10,440 lbs of materials, which complies with the policy. The company expects to have 16,704 lbs. o/ materials in inventory at year-end. The company has no work in process inventory at the ene of any quarter. Sales representatives' commissions are 18% Of sales and are paid in the quarter of the sales-Th sales manager's quarterly salary will be $198,000 in the first three quarters of the year, and $211,000 in the final quarter. Quarterly general ond administrative expenses include $84,000 administrative salaries, rent; expense of $50,000 per quarter, insurance expense of $40,000 per quarter, straight- line depreciation of $40,000 per quarter, and 1% monthly interest on the $400,000 long-term note payable (12% annually). Income taxes will be assessed at 35%, and are paid in the quarter incurred. for for final of the total 2,900 units. Required unAS O' DtOduetion u ruts to Requirement prepare the Direct Materials Budget for Zordich Inc. Company. policy calls for a g rter's ending ra - Is to equal 60% of net quarter'S upected materials needed for production. The prior year-end inventory 10,440 lbs of materials, which complies with the policy. The company expects t ha o 16,704 of maten I n ear-end. The s ring is $199 unit, including per unit costs of $120 for materials (8 lbs. at $15 perlb.), $54 for direct labor (3 hours x $18 direct labor rate per hour), $21 vuiable and $4 for fixed Direct Materials Budet For 31 , 2018 Materials needed production (pounds) Total materials requinmentg Materials to Total of diCt Expected n units) 2.6@0 I), 1,740 (Quarter 2), 2,320 (Quarter 3), and 2,320 (Quarter for the of following The is $620 unit in the of the $650 unit in gudgetea Total