JingerBell manufactures a single product called Lays and it was sold in the market at the price of $18 per unit. The marketing department of JingerBell has submitted the following sales forecast for the upcoming year 2021: Month Sales Demand Quarter 1 11,000 units Quarter 2 12,000 units Quarter 3 14,000 units Quarter 4 13,000 units The company expects to start the first quarter with 1,650 units in finished goods inventory. It is the companys policy to hold stocks of finished goods at the end of each quarter equals to 15% of the next quarters budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.

The beginning raw materials inventory for the first quarter is budgeted to be 1,400 kg. Each unit of Lays requires 2 kg of raw material that costs $1.50 per kg. The managements policy is to hold ending inventory of raw materials equal to 10% of the following quarters production needs. The desired ending raw material inventory for the fourth quarter is 1,500 units. In addition, the labour is paid at $12.00 per hour and each unit of Lays requires production time of 30 minutes.

Required:

a. Prepare the sales budget of JngerBell for each quarter of the upcoming year 2021. (4 marks)

b. Prepare the production budget of JingerBell for each quarter of the year 2021. (5 marks)

c. Prepare the raw material usage and purchase budget of JingerBell for each quarter of the year 2021. (7 marks)

d. Prepare the direct labour budget of jingerBell for each quarter of the year 2021. (4 marks)