Question 1: Crispy Inc. manufactures potato chips. The budget director has gathered the following data for use in developing the budget for December. Prepare the following budget. [2 points each, total 10/20] 1. Sales budget 2. Production budget 3. Direct material budget 4. Direct labor cost budget 5. Cost of the good sold budget. A) Estimated sales for December: Estimated sales units Estimated selling price per unit 100,000 units $10 B) Estimated inventories of finished good Beginning inventory units, January 1 Desired ending inventory units, December 31 20,000 units 50,000 units C) Direct material used in production Potatoes Beginning inventory units, January 1 Desired ending inventory units, December 31 Price per pound of potatoes 0.30 lb. per unit 8,000 lbs. 20,000 lbs. $ 0.5 per lb. D) Direct labor requirements: Direct labor hours per unit Direct labor wage 0.2 hr. $4 per hr. E) Cost of inventories: $ 40,000 $ 100,000 Finished goods: Beginning inventory, January 1 Desired ending inventory, December 31 Direct materials: Beginning inventory, January 1 Desired ending inventory, December 31 $ 8,800 $ 23,100 F) Other estimated expenses: Total factory overhead cost $ 40,000 1