OPERATING BUDGETS

Annette Company produces a caliber used in the production of automobile transmissions. The caliber is sold to automobile manufactures and automobile engine manufacturers. The Sales Price is $240 per unit. The Budgeted (Expected) Sales In Units for the first four (4) months of the next year are as follow:

MONTH UNITS

JANUARY 30,000

FEBRUARY 40,000

MARCH 50,000

APRIL 60,000

Annette Company's policy is to have twenty percent (20%) of next month's Budgeted (Expected) Sales in Ending Finished Goods Inventory. In addition, each caliber requires four (4) pounds of metal materials (Direct Materials) which cost $12.50 per pound. Annette Company's policy is to have forty percent (40%) of next month's production needs in Ending Raw Materials (Direct Materials) Inventory.

Required

Prepare a monthly Operating Budget for the first quarter of next year for the following individual Budgets:

1. Sales Budget

2. Production Budget

3. Direct Materials Purchases Budget

INSERT THE REQUIRED A BOVE INFORMATION INT BELOW Annette Company Sales Budget (Schedule 1) For the Quarter Ended March 31 Janua Februa March Total Units Sales Price Total Sales Annette Company Production Budget (Schedule 2) For the Quarter Ended March 31 Januar Februa March Total Sales (Schedule 1) Desired Ending Finished Inventory Total Units Needed Less: Beginning Finished Goods Inventory Units To Be Produced