Prasmul Company is a healthcare equipment manufacturer. Prasmul Company is preparing master budget for 2021. Information available is as following:

Sales:

Sales for the year are expected to total 2,000,000 units. Quarterly sales, as a percentage of total sales, are 15%, 30%, 20%, 35%. The sales price is expected to be $500 per unit.

Production:

Management desires to maintain ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Prasmul company expects the sales for the first quarter 2022 is 10% higher than fourth quarter 2021.

Direct Material:

Two kilograms of raw materials are needed for each unit, and the estimated cost per kilogram $20. Management desires an ending inventory equal to 30% of next quarter's materials production requirements. Assume the production requirements for first quarter of 2022 are 1,600,000 kilograms.

Direct Labor:

To make a finished unit, it takes 3 hours. and the expected hourly wage rate is 80 per hour.

Manufacturing Overhead:

Fixed overhead costs are estimated to be $9,423,000 in each quarter. Variable manufacturing overhead is based on direct labor hours. Variable manufacturing overhead rate is $ 30 per hour.

Selling and administrative:

Fixed selling and administrative expense is $400,000 per quarter. Variable selling and administrative expense is $ 10 per unit sold

Sales Budget
For The Year 2021
	Quarter				Year
	1	2	3	4
Sales in units
Sales price	500	500	500	500
Budgeted sales revenue

Production Budget
For The Year 2021
	Quarter				Year
	1	2	3	4
Sales in units
Desired ending inventory
Total required units
Less : beginning inventory
Units to be produced

Direct Material Purchase Budget
For The Year 2021
	Quarter				Year
	1	2	3	4
Units to be produced
Direct materials need (Kg per unit)	2	2	2	2	2
Production needs (Kg)
Desired ending inventory
Total needs
Less : beginning inventory
Direct material to be purchased
Cost of Raw Material per Kg	$20	$20	$20	$20
Total purchase cost of Raw Material