Igloo Co. manufactures and sells a rubber for boots (in bags), called Rubbs. The following data are available for preparing budgets for Rubbs for the first two quarters of 2023.

Sales: Quarter 1, 40,000 bags; quarter 2, 60,000 bags.

Selling price is $60 per bag.

Direct materials: Each bag of Rubbs requires 6 kg of Aces at $4 per kilogram and 10 kg of Zeds at $1.50 per kilogram.

Desired inventory levels:

Type of Inventory January 1 April 1 July 1

Rubbs (bags) 10,000 15,000 20,000

Aces (kilograms) 9,000 12,000 15,000

Zeds (kilograms) 15,000 20,000 25,000

Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12 per hour.

Selling and administrative expenses are expected to be 10% of sales plus $150,000 per quarter

Income taxes are expected to be 30% of income from operations.

Your assistant has prepared two budgets:

(1) the manufacturing overhead budget, which shows expected costs to be 100% of direct labour costs;

(2) the direct materials budget for Zeds, which shows the cost of Zeds purchases to be $682,500 in quarter 1 and $982,500 in quarter 2

1. Sales, Q1

2. Sales, Q1

3. Required units, Q1

4. Required units, Q2

5. Required units, Q1 and Q2

6. Required production in units, Q1

7. Required production in units, Q2

8. Hours required in production, Q1

9. Hours required in production, Q2

10. Cost of direct labour, Q1

11. Cost of direct labour, Q2

12. Materials required (kg), Q1

13. Materials required (kg), Q2

14. Cost of materials purchases, Q1

15. Cost of materials purchases, Q2

16. Selling and admin, Q1

17. Selling and admin, Q2

18. Cost of 1 unit of finished goods

19. Cost of goods sold

20. Gross profit

21. Net income