Golden Stars Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows:

Sales: Sales for the year are expected to total 1,600,000 units. Quarterly sales are 25%, 20%, 20%, and 35% respectively. The sales price is expected to be $50 per unit for the first three quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020.

Production: Management desires to maintain ending finished goods inventories at 25% of next quarters budgeted sales volume.

Direct materials: Each unit requires 3 pounds of raw materials at a cost of $5 per pound. Management desires to maintain raw materials inventories at 5% of the next quarters production requirements. Assume the production requirements for the first quarter of 2021 are 1,100,000 pounds.

Prepare the: -

Sales Budget

Production Budget

Direct materials Budget

Labour Budget

Manufacturing Overhead Budget

Selling and Administrative Expense Budget