P22-40. Developing a Master Budget for a Manufacturing Organization Cubs Incorporated manufactures a product with a selling price of $75 per unit. Units and monthly cost data follow: Variable Selling and administrative.. $ 3 per unit sold Direct materials... 15 per unit manufactured Direct labor... 5 per unit manufactured Variable manufacturing overhead. 7 per unit manufactured Fixed Selling and administrative... $160,000 per month Manufacturing (including depreciation of $15,000). 150,000 per month Cubs Inc. pays all bills in the month incurred. All sales are on account with 50% collected the month of sale and the balance collected the following month. There are no sales discounts or bad debts. Cubs Inc. desires to maintain an ending finished goods inventory equal to 40% of the following month's sales and a raw materials inventory equal to 20% of the following month's production. January 1 inventories are in line with these policies. Actual unit sales for December and budgeted unit sales for January, February, and March are as follows: CUBS INCORPORATED Sales Budget For the Months of January, February, and March December January February 10,000 12,000 11,500 $750,000 $900,000 $862,500 Month Sales-Units. Sales-Dollars March 12,500 $937,500 Additional information: The January 1 beginning cash is projected as $10,000. For the purpose of operational budgeting, units in the January 1 inventory of finished goods are valued at variable manufacturing cost. Each unit of finished product requires one unit of raw materials. Cubs Inc. intends to pay a cash dividend of $15,000 in January Required a. A production budget for January and February. b. A purchases budget in units for January. c. A manufacturing cost budget for January. d. A cash budget for January e. A budgeted contribution income statement for January