QUESTION : 1 Golden Stars Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows: Sales: Sales for the year are expected to total 1,600,000 units. Quarterly sales are 30%,20%, 30%, and 20% respectively. The sales price is expected to be $55 per unit for the first three quarters and $65 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% 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 $5 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 2021 are 1,100,000 pounds. Direct Labour: Two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $10. The manufacture of each product requires 3 pounds of raw materials, and the expected cost per pound is $5. Assume that the desired ending direct materials amount is 1,020 pounds for the fourth quarter of 2020. Beginning direct material is 620 pounds for the first quarter of 2020 . Prepare the: - 1. Sales Budget 2. Production Budget 3. Direct materials Budget 4. Budget 5. Manufacturing Overhead Budget 6. Selling and Administrative Expense Budget