1. Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below.

   January	10,000
   February	10,500
   March	13,000
   April	16,000
   May	18,500

   The following data pertain to production policies and manufacturing specifications followed by Ponderosa:

   1. Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next months sales.
   2. The data on materials used are as follows:

      Direct Material	Per-Unit Usage	Unit Cost
      Part #K298	2	$4
      Part #C30	3	7

      Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next months production needs. This is exactly the amount of material on hand on January 1.

   3. The direct labor used per unit of output is one and one-half hours. The average direct labor cost per hour is $20.
   4. Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.)

      	Fixed Cost Component	Variable Cost Component
      Supplies	$	$1.00
      Power		0.20
      Maintenance	12,600	1.10
      Supervision	14,000
      Depreciation	45,000
      Taxes	4,300
      Other	86,000	1.60

   5. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Activity is measured in units sold.)

      	Fixed Costs	Variable Costs
      Salaries	$ 88,600
      Commissions		$1.40
      Depreciation	25,000
      Shipping		3.60
      Other	137,000	1.60

   6. The unit selling price of the wiring harness assembly is $110.
   7. In February, the company plans to purchase land for future expansion. The land costs $68,000.
   8. All sales and purchases are for cash. The cash balance on January 1 equals $62,800. The firm wants to have an ending cash balance of at least $25,000. If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in $1,000 increments and is repaid the following month, as is the interest due. The interest rate is 12 percent per annum.

   Required:

   Prepare a monthly operating budget for the first quarter with the following schedules:

   1. Sales budget

   	January	February	March	Total
   Units	fill in the blank 69060a06dfca01f_1	fill in the blank 69060a06dfca01f_2	fill in the blank 69060a06dfca01f_3	fill in the blank 69060a06dfca01f_4
   Unit selling price	$fill in the blank 69060a06dfca01f_5	$fill in the blank 69060a06dfca01f_6	$fill in the blank 69060a06dfca01f_7	$fill in the blank 69060a06dfca01f_8
   Sales	$fill in the blank 69060a06dfca01f_9	$fill in the blank 69060a06dfca01f_10	$fill in the blank 69060a06dfca01f_11	$fill in the blank 69060a06dfca01f_12

   2. Production budget

   	January	February	March	Total
   Unit sales	fill in the blank d57a7af82fea077_1	fill in the blank d57a7af82fea077_2	fill in the blank d57a7af82fea077_3	fill in the blank d57a7af82fea077_4
   Desired ending inventory	fill in the blank d57a7af82fea077_5	fill in the blank d57a7af82fea077_6	fill in the blank d57a7af82fea077_7	fill in the blank d57a7af82fea077_8
   Total needed	fill in the blank d57a7af82fea077_9	fill in the blank d57a7af82fea077_10	fill in the blank d57a7af82fea077_11	fill in the blank d57a7af82fea077_12
   Less: Beginning inventory	fill in the blank d57a7af82fea077_13	fill in the blank d57a7af82fea077_14	fill in the blank d57a7af82fea077_15	fill in the blank d57a7af82fea077_16
   Units produced	fill in the blank d57a7af82fea077_17	fill in the blank d57a7af82fea077_18	fill in the blank d57a7af82fea077_19	fill in the blank d57a7af82fea077_20

   3. Direct materials purchases budget

   	January		February		March		Total
   	Part K298	Part C30	Part K298	Part C30	Part K298	Part C30	Part K298	Part C30
   Units produced	fill in the blank 5524ca0de032fde_1	fill in the blank 5524ca0de032fde_2	fill in the blank 5524ca0de032fde_3	fill in the blank 5524ca0de032fde_4	fill in the blank 5524ca0de032fde_5	fill in the blank 5524ca0de032fde_6	fill in the blank 5524ca0de032fde_7	fill in the blank 5524ca0de032fde_8
   Dir. mat. per unit	fill in the blank 5524ca0de032fde_9	fill in the blank 5524ca0de032fde_10	fill in the blank 5524ca0de032fde_11	fill in the blank 5524ca0de032fde_12	fill in the blank 5524ca0de032fde_13	fill in the blank 5524ca0de032fde_14	fill in the blank 5524ca0de032fde_15	fill in the blank 5524ca0de032fde_16
   Production needs	fill in the blank 5524ca0de032fde_17	fill in the blank 5524ca0de032fde_18	fill in the blank 5524ca0de032fde_19	fill in the blank 5524ca0de032fde_20	fill in the blank 5524ca0de032fde_21	fill in the blank 5524ca0de032fde_22	fill in the blank 5524ca0de032fde_23	fill in the blank 5524ca0de032fde_24
   Desired EI	fill in the blank 5524ca0de032fde_25	fill in the blank 5524ca0de032fde_26	fill in the blank 5524ca0de032fde_27	fill in the blank 5524ca0de032fde_28	fill in the blank 5524ca0de032fde_29	fill in the blank 5524ca0de032fde_30	fill in the blank 5524ca0de032fde_31	fill in the blank 5524ca0de032fde_32
   Total needed	fill in the blank 5524ca0de032fde_33	fill in the blank 5524ca0de032fde_34	fill in the blank 5524ca0de032fde_35	fill in the blank 5524ca0de032fde_36	fill in the blank 5524ca0de032fde_37	fill in the blank 5524ca0de032fde_38	fill in the blank 5524ca0de032fde_39	fill in the blank 5524ca0de032fde_40
   Less: BI	fill in the blank 5524ca0de032fde_41	fill in the blank 5524ca0de032fde_42	fill in the blank 5524ca0de032fde_43	fill in the blank 5524ca0de032fde_44	fill in the blank 5524ca0de032fde_45	fill in the blank 5524ca0de032fde_46	fill in the blank 5524ca0de032fde_47	fill in the blank 5524ca0de032fde_48
   Dir. mat. to purchase	fill in the blank 5524ca0de032fde_49	fill in the blank 5524ca0de032fde_50	fill in the blank 5524ca0de032fde_51	fill in the blank 5524ca0de032fde_52	fill in the blank 5524ca0de032fde_53	fill in the blank 5524ca0de032fde_54	fill in the blank 5524ca0de032fde_55	fill in the blank 5524ca0de032fde_56
   Cost per unit	$fill in the blank 5524ca0de032fde_57	$fill in the blank 5524ca0de032fde_58	$fill in the blank 5524ca0de032fde_59	$fill in the blank 5524ca0de032fde_60	$fill in the blank 5524ca0de032fde_61	$fill in the blank 5524ca0de032fde_62	$fill in the blank 5524ca0de032fde_63	$fill in the blank 5524ca0de032fde_64
   Total purchase cost	$fill in the blank 5524ca0de032fde_65	$fill in the blank 5524ca0de032fde_66	$fill in the blank 5524ca0de032fde_67	$fill in the blank 5524ca0de032fde_68	$fill in the blank 5524ca0de032fde_69	$fill in the blank 5524ca0de032fde_70	$fill in the blank 5524ca0de032fde_71	$fill in the blank 5524ca0de032fde_72

   4. Direct labor budget. Round your answers to two decimal places, if required.

   	January	February	March	Total
   Units to be produced	fill in the blank 46c285f5e015023_1	fill in the blank 46c285f5e015023_2	fill in the blank 46c285f5e015023_3	fill in the blank 46c285f5e015023_4
   Direct labor time per unit (hrs.)	fill in the blank 46c285f5e015023_5	fill in the blank 46c285f5e015023_6	fill in the blank 46c285f5e015023_7	fill in the blank 46c285f5e015023_8
   Total hours needed	fill in the blank 46c285f5e015023_9	fill in the blank 46c285f5e015023_10	fill in the blank 46c285f5e015023_11	fill in the blank 46c285f5e015023_12
   Wages per hour	$fill in the blank 46c285f5e015023_13	$fill in the blank 46c285f5e015023_14	$fill in the blank 46c285f5e015023_15	$fill in the blank 46c285f5e015023_16
   Total direct labor cost	$fill in the blank 46c285f5e015023_17	$fill in the blank 46c285f5e015023_18	$fill in the blank 46c285f5e015023_19	$fill in the blank 46c285f5e015023_20

   5. Overhead budget. Round your answers to two decimal places, if required.

   	January	February	March	Total
   Budgeted direct labor hours	fill in the blank 74a2e9fedfb2fb1_1	fill in the blank 74a2e9fedfb2fb1_2	fill in the blank 74a2e9fedfb2fb1_3	fill in the blank 74a2e9fedfb2fb1_4
   Variable overhead rate	fill in the blank 74a2e9fedfb2fb1_5	fill in the blank 74a2e9fedfb2fb1_6	fill in the blank 74a2e9fedfb2fb1_7	fill in the blank 74a2e9fedfb2fb1_8
   Budgeted var. overhead	$fill in the blank 74a2e9fedfb2fb1_9	$fill in the blank 74a2e9fedfb2fb1_10	$fill in the blank 74a2e9fedfb2fb1_11	$fill in the blank 74a2e9fedfb2fb1_12
   Budgeted fixed overhead	fill in the blank 74a2e9fedfb2fb1_13	fill in the blank 74a2e9fedfb2fb1_14	fill in the blank 74a2e9fedfb2fb1_15	fill in the blank 74a2e9fedfb2fb1_16
   Total overhead cost	$fill in the blank 74a2e9fedfb2fb1_17	$fill in the blank 74a2e9fedfb2fb1_18	$fill in the blank 74a2e9fedfb2fb1_19	$fill in the blank 74a2e9fedfb2fb1_20