Genuine Spice Inc. began operations on January $1$ of the current year. The company produces $8-$ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in $12-$bottle cases for $$100$ per case. There is a selling commission of $$20$ per case. The January direct materials, direct labor, and factory overhead costs are as follows:

DIRECT MATERIALS

Cost Behavior Units per Case Cost per Unit Cost per Case

Cream base Variable $100$ ozs. $$0\mathrm{.}02$ $$2\mathrm{.}00$

Natural oils Variable $30$ ozs. $0\mathrm{.}309\mathrm{.}00$

Bottle $(8-$oz$.)$ Variable $12$ bottles $0\mathrm{.}506\mathrm{.}00$

$$17\mathrm{.}00$

DIRECT LABOR

Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case

Mixing Variable $20$ min. $$18\mathrm{.}00$ $$6\mathrm{.}00$

Filling Variable $514\mathrm{.}401\mathrm{.}20$

$25$ min. $$7\mathrm{.}20$

FACTORY OVERHEAD

Cost Behavior Total Cost

Utilities Mixed $$600$

Facility lease Fixed $14,000$

Equipment depreciation Fixed $4,300$

Supplies Fixed $660$

$$19,560$Prepare the August

Finished Goods Inventory:

Cases

Cost

Estimated finished goods inventory, August $1300$ $$12,000$

Desired finished goods inventory, August $311757,000$

Materials Inventory:

Cream Base

Oils

Bottles

$($ozs$.)$

$($ozs$.)$

$($bottles$)$

Estimated materials inventory, August $1250290600$

Desired materials inventory, August $311,000360240$ direct materials purchases budget.

Prepare the August direct materials purchases budget.

Prepare the August direct labor budget.

Prepare the August factory overhead budget.

Prepare the August budgeted income statement, including selling expenses.