Managerial accountants and the budget committee for the ABC corporation is meeting in November to prepare the $2019$ budget. Your task, as a member of the budget committee, is to prepare the $2019$ budget given the following data:

Sales: The company expects to sell Q$1$: $40,000$; Q$2$: $30,000$; Q$3$: $60,000$ and Q$4$: $50,000$ units. The selling price per unit is expected to be $$50$ in the first three quarters, but only $$40$ per unit in Q$4$ because substantial competition is expected beginning in Q$4$ of $2019.$ Sales are expected to be $40,000$ units in Q$1$ of $2020.$

The company wants to maintain ending finished goods inventory at $25\%$ of the next quarter$$s expected unit sales.

Each unit of final goods produced requires $1\mathrm{.}5$ hours of direct labor time at $$12$ per hour.

Variable overhead costs are calculated per unit of direct labor hours as follows: indirect labor $$0\mathrm{.}2,$ indirect materials $$0\mathrm{.}1,$ maintenance $$0\mathrm{.}5.$

annual fixed overhead costs are: supervisory salaries $$200,000,$ maintenance $$60,000,$ depreciation $$80,000.$ They are allocated equally across quarters.

Direct raw material requirements are $5$ kilograms per unit of output produced and the cost is $$1\mathrm{.}5$ per kilogram of materials. At the end of each quarter, the company maintains $10\%$ of the next quarter$$s raw materials needs.

Instructions:

Prepare the following budgets by quarter for the year $2019$:

$[$Use the format shown in the textbook to prepare each quarter$$s budget. Your work and calculations MUST be done using a Microsoft excel spreadsheet.$]$

$($a$)$ Sales budget

$($b$)$ Production budget

$($c$)$ Direct materials budget

$($d$)$ Direct labor budget

$($e$)$ Manufacturing overhead budget