Hurtt's Java Seeds is an independent roaster of specialty coffee beans. The company budgets 2 months ahead, so that in early January, it is time to plan for March. During March, the company plans to sell50,000pounds of beans. At the end of February, the company expects to have6,000pounds of raw green coffee beans (costing $7,000) and800pounds of roasted beans (costing $4,200) in inventory. Hurtt's would like to have1,200pounds of green coffee beans and500pounds of roasted beans in inventory at the end of March. Hurtt's purchases green coffee beans from the grower at $3per pound and sells the roasted beans for $17per pound.

Hurtt's roasters hold25pounds of green coffee beans. It takes16minutes to roast the beans to perfection. Because the roaster must be monitored by an employee at all times, each batch requires0.26direct labor hours. During the roasting process, the green beans lose24% of their weight, so that1.25pounds of green (raw) beans must be used to produce1pound of roasted beans. The standard direct labor rate is $14per direct labor hour. Variable overhead is applied at the rate of $86per direct labor hour, and fixed overhead is budgeted at $13,097per month, including $1,550in equipment depreciation.

Prepare Hurtt's sales budget for March:

1.Budgeted pounds sold - 50,000lbs

2.Budgeted sales price per pound - $17/lb

3.Budgeted Sales Revenue - $850,000