FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

		Type of Box
	C				P
Direct material required per 100 boxes:
Paperboard ($0.34 per pound)		30	pounds			70	pounds
Corrugating medium ($0.17 per pound)		20	pounds			30	pounds
Direct labor required per 100 boxes ($17.00 per hour)		0.40	hour			0.80	hour

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 445,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

Indirect material	$	13,500
Indirect labor		74,440
Utilities		39,000
Property taxes		26,000
Insurance		19,000
Depreciation		47,000
Total	$	218,940

The following selling and administrative expenses are anticipated for the next year.

Salaries and fringe benefits of sales personnel	$	129,000
Advertising		28,000
Management salaries and fringe benefits		146,000
Clerical wages and fringe benefits		44,500
Miscellaneous administrative expenses		7,100
Total	$	354,600

The sales forecast for the next year is as follows:

	Sales Volume				Sales Price
Box type C		450,000	boxes		$	120.00	per hundred boxes
Box type P		450,000	boxes			180.00	per hundred boxes

The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.

	Expected Inventory January 1			Desired Ending Inventory December 31
Finished goods:
Box type C	10,500	boxes		5,500	boxes
Box type P	20,500	boxes		15,500	boxes
Raw material:
Paperboard	13,500	pounds		3,500	pounds
Corrugating medium	4,500	pounds		9,500	pounds

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.

Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)

2. Prepare the production budget for the next year. 3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium. 4. Prepare the direct-labor budget for the next year

5. Prepare the production-overhead budget for the next year. 6. Prepare the selling and administrative expense budget for the next year. 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)