Page of 2 BUDGETS 01 Creute u soles budget. Thunder Creek Company expects sales of 18,000 units in lanuary 2018, 24,000 units in February, 30,000 units in March, 34,000 in April, and 36,000 In May. The salas price Is $43 per unit. #2 Create production budget. Thunder Creek k wants to finish a hmonth with 20% at next month's sales in u 3 Create a Direct Materials Budget Thunder Creck Company uscs 2 pounds of direct matcrials for cach unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of metersl in Row Msterals l rventory. Management desires *n ending "ventory of 25% of "ext month's mylenels Thunder Crock Company's workers requirc 30 minutes ot labor to produce cach unlt of product. The labor cost s $20 per hour Budget 5: Create a Manufacturing Overhead Budget 1. Thunder Creek Company prepare its Manufacturing overhead Budget. For ch direct labor hour, the variable overhead costs are: Indirect Materias $1.00 per DLH; Indirect Labor Cost $1.30 per DLH; Maintenance $1.20 per DLH 2. The Fed Overhead Costs per month are: Salares of $40,000, Dopreciation-$20,000 and Malntenancc-$10,000. 3, ROUND the predetermined overhesd alocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours Budget ub: Create a Cost of Gouds Sold Budget Thunder Creek Company uses the first-in, first-out (FIFO) Inventory costing method The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. Budget #7: Selling and Administrative Expense Budget Thunder Creek Company's varlable supplies expense per month is $3.00 per unit The fiwed seling and administrative expenses per month cons st of Salaries: $245,000;Advertising: $30,000; and Depreciation: $28,000 Budget es: Budget Income from Continuing Operations (Tie it all together) Q1 Total Budgeted Sales Revenue Budgeted Cast of Goods Sold Oudgeted Gross Profit Budgated Selling and Administrative Expenes Ruadgeting income from Continuine Operations