Problem I

Prepare a master budget for McGregor Pharmacy Company for the year ending December $31,{2021}_{?}$ using the following information. Prepare it per quarter. Use the tables provided by the professor. Fill it$.$

Prepare the Sales Budget assuming:

Expected sales volume: $8,000$ units for the first quarter, an increase of $20\%$ is expected for the second quarter, a decrease of $10\%$ for the third quarter, and an increase of $25\%$ for the fourth quarter.

The sales price should be $$75\mathrm{.}00$ for the first two quarters and $$82\mathrm{.}50$ for the last two quarters.

Prepare the Production Budget assuming:

The company believes it can meet future sales needs with an ending inventory of $25\%$ of the next quarter, for the first two quarters, and $35\%$ of the next quarter, for the last two quarters.

The expected sales in units for the first quarter of $2022$ is $11,000.$

Prepare the Direct Material Budget assuming:

Ending inventory of raw material is expected to be $15\%$ of total pounds needed for production of the next quarter for the first two quarters and $20\%$ of the next quarter for the last two quarters.

The expected pounds needed for production in the first quarter of $2022$ is $38,500.$

Each product requires $3$ pounds of raw material.

The expected cost per pound is $$8\mathrm{.}25.$