Maurizio Inc. is a company which designs outstanding costumes, designed to be worn by the contestants on "Dancing with The Stars".

Below is the expected (budgeted) data for the start of next year:

	April	May	June	July
Sales in units	40	60	90	70
Sales price per unit	$240.00	$260.00	$310.00	$400.00

The desired ending inventory for finished goods (production) is 10% of next month's sales.

The desired ending inventory for raw materials is 20% of the next month's raw material requirements.

Raw material required for each unit of the product is 5 units.

The cost of each unit of raw material is $50 per unit.

Time required to assemble one (1) costume is 120 minutes.

Workers are paid $25 per direct labour hour.

Using the above information answer the following questions.

Using the sales budget, calculate the budgeted sales for May.

HINT: remember the entry rules!

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Complete the production budget.

How many units will have to be produced in May to meet the requirements?

HINT: What are the "Units to be produced" on the production budget for May?

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Prepare the Direct Materials Purchases Budget.

What will be the cost of May's production?

HINT: On the Direct Materials Purchases Budget, what will be the "Total direct materials cost"?

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Prepare the Direct Labour Budget.

What will be the total direct labour cost (rounded to the nearest dollar) for May?

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