Project: $1$ AL$-$Riyadh Company is preparing its master budget for $2019.$ Relevant data pertaining to its sales, production, and direct materials budgets are as follows: Sales for the year are expected to total $1,800,000$ units. Quarterly sales are $25\%$ for each quarter. The sales price is expected to be $$60$ per unit for the first three quarters and $$75$ per unit beginning in the fourth quarter. Sales in the first quarter of $2016$ are expected to be $10\%$ higher than the budgeted sales for the first quarter of $2020.$ Production: Management desires to maintain ending finished goods inventories at $25\%$ of next quarter's budgeted sales volume. Direct materials: Each unit requires $4$ pounds of raw materials at a cost of

Project: $1$

AL$-$Riyadh Company is preparing its master budget for $2019.$ Relevant data pertaining to its sales, production, and direct materials budgets are as follows:

Sales for the year are expected to total $1,800,000$ units. Quarterly sales are $25\%$ for each quarter. The sales price is expected to be $$60$ per unit for the first three quarters and $$75$ per unit beginning in the fourth quarter. Sales in the first quarter of $2016$ are expected to be $10\%$ higher than the budgeted sales for the first quarter of $2020.$

Production: Management desires to maintain ending finished goods inventories at $25\%$ of next quarter's budgeted sales volume.

Direct materials: Each unit requires $4$ pounds of raw materials at a cost of $$6$ per pound. Management desires to maintain raw materials inventories at $5\%$ of the next quarter's production requirements. Assume the production requirements for the first quarter of $2020$ are $1,150,000$ pounds.

Direct labor hours are determined from the production budget. AL$-$Riyadh Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $$15.$

AL$-$Riyadh Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $$1\mathrm{.}50,$ indirect labor $$2\mathrm{.}00,$ utilities $$0\mathrm{.}50,$ and maintenance $$0\mathrm{.}40$ from direct labor hours AL$-$Riyadh also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed

Variable expense rates per unit of sales are sales commissions $$2\mathrm{.}50$ and freight$-$out $$1.$ Variable expenses per quarter are based on the unit sales from the sales budget. AL$-$Riyadh expects sales in the first quarter to be $4,000$ units. Fixed expenses are based on assumed data.

Requirements

A$.$ Prepare the sales budget by quarters for $2019.$

B$.$ Prepare the production budget by quarters for $2019.$

C$.$ Prepare the direct materials budget by quarters for $2019.$

D$.$ Prepare the direct Labor budget by quarters for $2019.$

E$.,$ Prepare the Manufacturing Overhead budget by quarters for $2019.$

F$.,$ Prepare the Selling and Administrative Expense Budget.

$($Variable expense rates per unit of sales are sales commissions $$3$ and freight$-$out $$1.$ Variable expenses per quarter are based on the unit sales from the sales budget. AL$-$Riyadh Company expects sales in the first quarter to be $3,000$ units. Fixed expenses are based on assumed data$).$