I have attached a file that requires to make Sales, Production, Direct Material & Direct Labor Budget of the first quarter only (January, February & March, 2016).

Please note that the direct material budget has no cost per unit and it shall be found manually (please provide steps of how to find it manually) not to mention most of the budgets are focusing of PREVIOUS month's units.

Thanks a lot.

The group should PREPARE the following documents for the first quarter (January, February & March) of 2016 by using a MS EXCEL spreadsheet:

(a)Sales Budget

(b)Production Budget

(c)Direct Materials Purchase Budget

(d)Direct Labor Budget

1.Sales:

Sales for November 2014112,500 units

Sales for December 2014102,100 units

Expected sales for January 2015113,000 units

Expected sales for February 2015112,500 units

Expected sales for March 2015116,000 units

Expected sales for April 2015125,000 units

Expected sales for May 2015137,500 units

Selling price per unit$12

Irrigation likes to keep 10% of the previous month's unit sales in ending inventory.

All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2014, totaled $183,780.

2.Direct Materials:

2 pounds of direct materials is needed to produce one unit. Irrigation likes to keep 5% of the materials needed for the previous month's production in its ending inventory. Raw materials on hand on December 31, 2014, totaled 11,295 pounds.

Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2014, totaled $120,595.

Find cost per unit

3.Direct Labor

Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour.