Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered.

Projected sales in units: 1,690 cases

Selling price per case: $240

Inventory at the beginning of the quarter: 150 cases

Target inventory at the end of the quarter: 100 cases

Direct labor hours needed to produce one case: 2 hours

Direct labor wages: $10 per hour

Direct materials cost per case: $8

Variable manufacturing overhead cost per case: $6

Fixed overhead costs for the upcoming quarter: $220,000

a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units.

Budgeted Sales( in dollars ): ________

Planned Production ( In cases ): _______

b. What is Mercury's budgeted variable manufacturing cost per case?

Total variable cost per case: _______

c. Prepare Mercury's manufacturing cost budget.

Variable Manufacturing costs:

_______

_______

_______

_______

Total variable manufacturing costs: ____

Total cost of finished goods manufactured: ______

d. What is the projected ending value of the Inventory account?