Moore Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget. Sales for the final quarter of the prior year total 200 units. Expected sales (in units) for the current year are: 170 (Quarter 1), 110 (Quarter 2), 140 (Quarter 3), and 180 (Quarter 4). Sales for the first quarter of the following year total 240 units. The selling price is $600 per unit in the first three quarters of the year, and $610 per unit in the final quarter. a. b. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 85 units, which complies with the policy. The product's manufacturing cost is $103 per unit, including per unit costs of $24 for materials (2 lbs. at $12 per lb.), $60 for direct labor (3 hoursx $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment,$1,000; factory utilities, $1,300, and other factory overhead of $240 Company policy also calls for a given quarter's ending raw materials inventory to equal 30% of next quarter's expected materials needed for production. The prior year-end inventory is 84 lbs of materials, which complies with the policy. The company expects to have 144 lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. C. Sales representatives, commissions are 12% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $8,000 in the first three quarters of the year, and $9,000 in the final quarter. d. Quarterly general and administrative expenses include $4,000 administrative salaries, rent expense of $2,000 per quarter, insurance expense of $2,000 per quarter, straight- line depreciation of $2,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12% annually). e. f. Income taxes will be assessed at 20%, and are paid in the quarter incurred Sales Budget Budget Production Direct Mtls Direct Lbr Factory OH Seing xp Admin Exp Cost of Income Budget Budget Budget Budget BudgetGoods Sold Statement Requirement Prepare the selling expense budget for the Moore Inc.. Sales representatives' commissions are 12% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $8,000 in the first three quarters of the year, and $9,000 in the final quarter. Moore Inc Selling Expense Budget For the year ended December 31, 2018 First Qtr Second Qtr Third Qtr Fourth Qtr Total $ 102,000 66,00084,000$109,800S361,800 Sales commissions 8,000 8,000 8,000 9,000 33,000 Total budgeted selling expenses Factory OH Budget Admin Exp Budget> Sales Budget Production Direct Mtls Direct Lbr Factory OH Selling ExpAdmin Exp Cost of Income Budget Budget Budget Budget Budget Budget Goods Sold Statement Requirement Prepare the Administrative Expense Budget for Moore Inc. Quarterly general and administrative expenses include $4,000 administrative salaries, rent expense of $2,000 per quarter, insurance expense of $2,000 per quarter, straight-line depreciation of $2,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (390 quarterly). Show less Moore Inc General and Administrative Budget For the year ended December 31, 2018 First Qtr. d Qtr. Third Qtr Fourth Qtr Total Total budgeted general and administrative expenses Sales Budget Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin ExpCost of Income BudgetBudgetBudgetBudget BudgetGoods SoldE Statement Requirement Using information from the sales budget and the following information, calculate the budgeted cost of goods sold for Moore Inc. The product's manufacturing cost is $103 per unit, including per unit costs of $24 for materials (2 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), $15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $1,000; factory utilities, $1,300, and other factory overhead of $240. Show lessA Moore Inc Cost of Goods Sold Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr Fourth Qtr Total 170 110 140 180 600 Cost of goods sold Sales Budget Budget Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost ofIncome Budget BudgetBudget Budget Budget Goods Sold Statement Requirement Prepare the Budgeted Income Statement for the year for Moore Inc. Interest on the $100,000 long-term note payable is 1% per month (12% annually). Income taxes will be assessed at 20%, and are paid in the quarter incurred. Moore Inc. Budgeted Income Statement For the year ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Interest expense Total operating expenses Income before income taxes Income tax expense Net income