Posluszry Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget A. Sales for the final quarter of the prior year total 1,600 units. Expected sales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quafter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. b. Company pollcy calis for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,008 units, which complies with the policy. The product's manufocturing cost is $211 per unit, including per unit costs of $84 for materials ( 6 lbs. at $14 per lb). $96 for direct labor ( 4 hours x $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400, factory utitities, $31,800, and other factory overhead of $6,352. c. Company policy also calls for a given quarter's ending faw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5,760bs, of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales: The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarteity general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartec, insurance expense of $16,000 per quarter, straightline depreclation of $16.000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred, Requirement: Prepare the Sales Budget for Posluszny Inc.. Sales for the final quarter of the prior year total 1,600 units. Expected aales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 ( Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. Company policy aiso calis for a given quanter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The pror yeateend inventory is 3,312. los of meteriats, which complics with the policy. The compeny expects to have 5,760 los. of materials in inventory at year-end. The company has no work in process invertory at the end of nny quarter. d. Saies representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be 577,000 in the first three quarters of the year, and 582,000 in the final quorter. 2. Ouarterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartec, insurance expense of $16.000 per quarter, straightline depreciation of $16,000 per quarter, and 1C monthly interest on the $100,000 long-term note payable (12\% annually). f. Income takes will be assessed at 30%, and are paid in the quarter incurred, Requirement: Prepare the production budget for Poslukzny Inc., Company policy calls for a given quarter's anding finished goods inventory to equal 7046 of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,008 units, which complies with the policy. Expected sales (In units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quanter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5.760 ibs. of materials in inventory at yeat-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. c. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 15 monthly interest on the $100,000 long-term note payable (i2* annually). 1. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Materials Budget for Posluszny Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5,760ibs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 lbs, at $14 per lb.), $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. fined overhedd consists, incumed evenly throughout the year, consist of depreciation on production equipment, $25,400, factory utilties, 531,800 , and other factory overhead of $6,352. c. Company policy also calls for a given quanter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year end inventory is 3,312. los of materiais, which complies with the policy. The company expects to have 5,760 fos, of materials in inventory at year-end. The company has no work in process inventory at the end of any quafter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82.000 in the final quarter. e. Ouarterly general and administrative expenses include $33,000 administrative salarles, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 fong-term note payable (12\% annually). 1. Income toxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Labor Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Incluc Company policy aiso calis for a given quanter's ending raw materials ifventory to equal 50% of next quafter's expected materials needed for production. The prior year-end inventory is 3,312 los of materials, which complies with the policy. The company expects to have 5,760 los, of materials in inventory at year-end. The company has no work in process inventory at the end of any quaftet, d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred, Requirement Prepare the Factory Overhead Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6lbs. at $14 per Ib.), $96 for direct labor. ( 4 hours $24 direct labor rate per hour), \$19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of c. Company policy aiso calis for a glven quanter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 lbs of materiais, which complies with the policy. The company expects to have 5,760 bs, of materials in inventory at year-end. The company has no work in process inventory at the end of any quartet. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and \$82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightIine depreciation of $16,000 per quartet, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the selling expense budget for the Posluszny Inc.. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarte salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. $24 direct labor rate per hour, $19 for variable overhead, and $12 for fired overhead Annual fired overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400, factory utilities, $31,800,andotherfactoryoverheadof$6,352. c. Company policy also calis for a given quarter's ending raw materiais inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 ibs of materiats, which complies with the policy. The company expects to have 5,760 los. of materials in imventory at yeat-end. The company has no work in process inventory at the end of any quartet. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 18 monthly interest on the $100,000 long-term note payable (12% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Administrative Expense Budget for Posluszny Inc. Quarteriy general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, Insurance expense of $16,000 per quarter, straight-line depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable ( 3% quarterly). fined overhend consists, incumed evenly throughout the yeac, consist of depreciation on production equipment, $25,400, factory utilites, $31,800, and other factory overnead of $6,352. Company policy aiso cals for a given quarters ending raw materials imventory to equal 50% of next quarter's expected materials needed for production. The prior year-end imventory is 3,312. los of materials, which complies with the policy. The company expects to have 5,760 los. of materibls in inventory at year-end. The company has no work in process inventory at the end of any quarter, d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quartet. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartet, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 fong-term note payable (12% annually). 1. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Using information from the sales budget and the following information, calculate the budgeted cost of goods sold for Poslusmy Inc. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 ibs. at $14 per lb.), $96 for direct labor (4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5,760lbs, of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Budgeted Income Statement for the year for Posluszny Inc. Interest on the $100,000 long-term note payable is 1% per month ( 12% annually). Income taxes will be assessed at 30%, and are pald in the quarter incurred