Please prepare budget for the quarter which consists of October, November and December.

August 3000 unit

September 3800 units

October 4000 units

November 4400 units

December 3600 units

January 4200 units

February 4100 units

Selling price is 50 per unit

A/R data: 20% of all sales are cash, the rest are credit

Of the credit sales --> Company collects 75% during the month of sale

20% the following month

5% the 2nd month following the sale

Data concerning goods inventory:

Goods Ending inventory on hand 25% of next month's budgeted unit sales PLUS 800 units

Data concerning Raw Materials:

6 lbs of material are required per unit of product

20% of the next month's needs of materials need to be on hand at the end of each month

$4.00 is the cost per lb of raw materials

Data concerning Direct Labor:

Each unit requires 0.8 hours of direct labor

Each DLH costs company $16

Management fully adjusts the workforce to the workload each month.

Data concerning Manufacturing OH and S&A Expenses:

VMOH is $3 per DLH

FMOH is $14,000 a month, including $6,000 depreciation

Variable selling and admin: $2

Fixed selling and admin: $10,000 a month, including $7,000 depreciation