Please help me with the answer to this question by showing step by step solution. Please consider answering section A to F as it is one question with different parts. Thank you in advance

Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars, Inc., produces energy bars and sells them by the case (1 unit = 1 case). Information to be used for the operating budget this coming year follows:

• Average sales price for each case is estimated to be $25. Unit sales for this coming year, ending December 31, are expected to be as follows:

  First quarter	80,000
  Second quarter	84,000
  Third quarter	88,000
  Fourth quarter	97,000

• Finished goods inventory is maintained at a level equal to 15 percent of the next quarters sales. Finished goods inventory at the end of the fourth quarter budget period is estimated to be 13,000 units.

• Each unit of product requires 5 pounds of direct materials, at a cost of $3 per pound. Management prefers to maintain ending raw materials inventory equal to 10 percent of next quarters materials needed in production. Raw materials inventory at the end of the fourth quarter budget period is estimated to be 43,000 pounds.

• Each unit of product requires 0.10 direct labor hours at a cost of $14 per hour.

• Variable manufacturing overhead costs are

  Indirect materials	$0.20 per unit
  Indirect labor	$0.15 per unit
  Other	$0.10 per unit

• Fixed manufacturing overhead costs per quarter are

  Salaries	$80,000
  Other	$70,000
  Depreciation	$55,625

Required:

a) Prepare a sales budget using the format shown in Figure 9.3.

b) Prepare a production budget using the format shown in Figure 9.4.

c) Prepare a direct materials purchases budget using the format shown in Figure 9.5.

d) Prepare a direct labor budget using the format shown in Figure 9.6.

e) Prepare a manufacturing overhead budget using the format shown in Figure 9.7. Round to the nearest dollar.

f) As the production manager, what concerns, if any, do you have about production requirements for each of the four quarters?

Figure 9.3 Sales Budget for Jerry's Ice Cream Jerry's Ice Cream Sales Budget Year Ending December 31 Quarter 1 2 3 4 Year Sales in units (1 unit = 1 gallon) Sales price per unit Sales revenue 40,000 $6 $240,000 48,000 X $6 $288,000 60,000 $6 $360,000 52,000 $6 $312,000 200,000 $6 $1,200,000 Figure 9.4 Production Budget for Jerry's Ice Cream *Information from Figure 9-3. **Desired ending inventory = 10 percent Next quarter sales; for the first quarter, 4,800 = 0.10 x 48,000. Fourth quarter desired ending inventory of 4,400 units is based on an estimate of sales in the first quarter of next year. ***Beginning inventory = Inventory at end of previous quarter, for example, second quarter beginning inventory = First quarter ending inventory. First quarter beginning inventory = Previous year fourth quarter ending inventory (4,000 = 0.10 x 40,000). Jerry's Ice Cream Production Budget Year Ending December 31 Quarter Sales in units Add desired ending finished good inventory** Total finished goods inventory needed Deduct beginning finished goods inventory*** Units to be produced 40,000 4,800 44,800 (4,000) 40,800 2 48,000 6,000 54,000 (4,800) 49,200 60,000 5,200 65,200 (6,000) 59,200 52,000 4,400 56,400 (5,200) 51,200 Year 200,000 4,400 204,400 (4,000) 200,400 Figure 9.5 Direct Materials Purchases Budget for Jerry's Ice Cream *Information from Figure 9.4. **Desired ending inventory = 20 percent * Next quarter production needs; for the first quarter, 19,680 = 0.20 x 98,400. Fourth quarter desired ending inventory of 20,000 pounds is based on an estimate of materials needed in production first quarter of next year. ***Beginning inventory = Inventory at end of previous quarter; for example, Second quarter beginning inventory = First quarter ending inventory. ****$2 direct materials cost per unit = 2 pounds of materials required per unit x $1 per pound. Jerry's Ice Cream Direct Materials Purchases Budget Year Ending December 31 Quarter 3 Year Units to be produced Materials required per unit (pounds) Materials needed in production Add desired ending inventory** Materials needed in inventory Deduct beginning inventory*** Direct materials to be purchased (pounds) Cost of materials per pound Cost of materials to be purchased Direct materials cost per unit**** 40,800 x2 81,600 19,680 101,280 (16,320) 84,960 $1 $ 84,960 2 49,200 X2 98,400 23,680 122,080 (19,680) 102,400 $1 $102,400 59,200 X2 118,400 20,480 138,880 (23,680) 115,200 $1 $115,200 51,200 X2 102,400 20,000 122,400 (20,480) 101,920 $1 $101,920 200,400 X2 400,800 20,000 420,800 (16,320) 404,480 $1 $404,480 2.00 Figure 9.6 Direct Labor Budget for Jerry's Ice Cream *From Figure 9.4. **$1.30 direct labor cost per unit = 0.10 direct labor hours per unit * $13 per hour. Jerry's Ice Cream Direct Labor Budget Year Ending December 31 Quarter 2 3 4 Year Units to be produced Direct labor hours per unit Total direct labor hours needed in production Labor rate per hour Total direct labor cost Direct labor cost per unit** 40,800 x 0.10 4,080 $13 $ 53,040 49,200 x 0.10 4,920 X $13 $ 63,960 59,200 X 0.10 5,920 $13 $ 76,960 51,200 x 0.10 5,120 $13 $ 66,560 200,400 x 0.10 20,040 $13 $260,520 $ 1.30 Figure 9.7 Manufacturing Overhead Budget for Jerry's Ice Cream *From Figure 9.4. **$1.20 = $240,480 total overhead cost = 200,400 units to be produced for the year. Deduct depreciation to get the actual cash payment for overhead. This information is needed for the cash budget presented in Figure 9.11. Jerry's Ice Cream Manufacturing Overhead Budget Year Ending December 31 Quarter 1 2 3 4 Year 40,800 49,200 59,200 51,200 200,400 $ 6,120 4,080 10,200 $ 20,400 $ 7,380 4,920 12,300 24,600 $ 8,880 5,920 14,800 $ 29,600 $ 7,680 5,120 12,800 $ 25,600 $ 30,060 20,040 50,100 $100,200 Units to be produced Variable overhead costs Indirect materials ($0.15 per unit) Indirect labor ($0.10 per unit) Other ($0.25 per unit) Total variable overhead costs Fixed overhead costs Salaries Rent Depreciation Total fixed overhead costs Total overhead costs Deduct depreciation Cash payments for overhead Manufacturing overhead per unit 15,000 10,000 10,070 $ 35,070 15,000 10,000 10,070 $ 35,070 15,000 10,000 10,070 $ 35,070 15.000 10,000 10,070 $ 35,070 60,000 40,000 40,280 $ 140,280 55,470 (10,070) $ 45,400 59,670 (10,070) $ 49,600 64,670 (10,070) $ 54,600 60,670 (10,070) $ 50,600 240,480 (40,280) $200,200 1.20