Problem 1: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement Problem 1 CRD Company prepares monthly operating and financial budgets. Estimates of sales in umts are made for each month as follows: April 80,000 units May 95.000 units June 100.000 units July 110,000 units Production is scheduled at a level high enough to take care of current sales needs and to carry into each month 35% of the next month's unit sales. The finished goods inventory at January 1 consists of 20.000 units. Direct materials are estimated at $3 per unit, direct labor at S10 per unit, and variable manufacturing overhead is estimated at $8 per unit. Total fixed manufacturing overhead is budgeted at $550,000 per month Sales price per unit is budgeted at $75 per unit Variable selling and administrative expenses are $20 per unit. Fixed selling and administrative expenses are $800,000 per month a) Prepare a sales budget for the second quarter by month. b) Prepare a schedule showing the budgeted production in units for April, May, and June c) Prepare a schedule showing the budgeted cost of goods sold for the same three months d) Prepare a budgeted income statement for the first quarter by month CRD Company Sales Budget For Second Quarter April May June 2nd Quarter June 2nd Quarter CRD Company Production Budget For Second Quarter April May Sales in units Add: Desired Ending Finished Goods Inv, Need a hint? (Check in box) Total Finished goods inv. Needed Deduct: Beg. Finished Goods Inventory Need a hint? (Check in box) Units to be produced Self Check (April and June only): CRD Company Cost of Goods Sold Budget (show each item individually) For Second Quarter April May June 2nd Quarter CRD Company Budgeted Income Statement For Second Quarter April May June 2nd Quarter Sales Revenue