Prepare a Sales Budget for the quarter that ended June 30, 2015 using the assumptions provided. I have done some of the other budgets that might provide information needed to create the sales budget.

Sales Budget

Production Budget
	April	May	June	Quarter		July
Unit Sales	25,000	30,000	31,000	88,000		33,000
Add: Desired Ending	6000	6200	6600	18800		6000
Total Needed	30,000	41,200	35,600	106,800		39,000
Less: Beginning Inventory	5000	6000	6200	5000		6600
Units to be Producted	25,000	35,200	29,400	101,800		32,400
Materials Purchases Budget
	April	May	June	Quarter
Production Units	26,000	30,200	31,400	87,600		32,400
Materials per Unit	3	3	3	3		3
Production Needs	78000	90600	94200	262800		97200
Add: Desired Ending Inventory	9060	9420	9720	9720
Total Needed	87060	100020	103920	291000
Less: Beginning Inventory	7800	9060	9420	7800
Materials to be Purchased	79260	90960	94500	291000
Direct Labor Budget
	April	May	June	Quarter
Production Units	26,000	30,200	31,400	87,600
Direct Labor Hours	0.2	0.2	0.2	0.2
Labor Hours Required	5200	6040	6280	17520
Direct Labor Costs per Hour	$20.00	$20.00	$20.00	$20.00
Total Direct Labor Cost	$104,000.00	$120,800.00	125,600.00	$350,400.00
Overhead Budget
	April	May	June	Quarter
Total Direct Labor Cost	104,000	120,800	125,600	350,400
Overhead Cost (175% of Direct Labor)	182,000	211,400	219,800	613,200

	April	May	June	July	August
Unit Sales	25,000	30,000	31,000	33,000	30,000
Sales Price	$10
Desired Ending Inventory for Finished Goods	20%	of next month's sales in units
Desired Ending Inventory for Material Units	10%	of next month's materials needed for production
Cost of one pound of materials	$0.25
Units of Direct Materials to make one unit	3
Minutes of Direct Labor to make one unit	12
Direct Labor Costs per Hour	$20
Overhead Costs percentage of Direct Labor	175%
Minimum cash balance	$ 20,000.00
Cash collections in month of sale	65%
Cash collections in first month after sale	25%
Cash collections in second month after sale	10%
Cash Payments in month of purchase	70%
Cash Payments in the first month after purch	30%
Selling Costs per month	$ 10,000.00
Administrative Costs per month	$ 15,000.00
Annual Interest Rate for Letter of Credit	12%
Annual Interest Rate Earned on Excess Cash	4%