Question 1: Swedish Chef Inc. makes high end cooking utensils. One of the products that they make and sell are cooking pots. Each pot is made with stainless steel and the pot lids are made with tempered glass. A pot with a lid is considered to be a single unit. Swedish Chef Inc. is currently preparing their budget for the next year. They believe they will sell 13,000 pots over the year and that they will sell each one for $42 each. They estimate that, on average, each pot will need 2 pounds of steel, 10 ounces of glass and.5 hours of direct manufacturing labor to make. They estimate that for the year, they will spend $.70 on each pound of steel and $1.19 on each ounce of glass. They also estimate they will spend $66,555 on labor, $17,226 on variable manufacturing overhead, and $22,707 on fixed manufacturing overhead. On December 31, 2018 Swedish Chef Inc. had $767 worth of steel and $11,011 worth of glass in their inventory. They had originally purchased the steel at $.65 per pound and the glass at $1.21 per ounce. They also had 450 finished pots in their inventory, which had a total cost of $11,025. At the end of the quarter, they want these amounts in their ending inventory: Steel Glass: Pots (Finished Goods): 1,200 pounds 9,300 ounces 500 pots Swedish Chef Inc. uses the FIFO method to cost direct materials and finished goods inventory. For the purpose of this budget, the work-in-process inventories are considered to be negligible and ignored and the unit costs of direct materials purchased and finished goods are assumed to be constant for the period. With this information, please prepare these parts of the master budget for Swedish Chef Inc. for the next year a. The Production Budget (Schedule 2) b. The Direct Materials Usage Budget (Schedule 3a) c. The Direct Manufacturing Labor Budget (Schedule 4) d. The Ending Inventories Budget (Just Schedule 6A (units)) e. The Cost of Goods Sold Budget (Schedule 7) (Schedule 2) (Schedule 3a) (Schedule 4) (Schedule 6a) (Schedule 7) 1 Opening Inventory450 Finished Pots 2 Each pot needs 2 pounds of steel and 10 ounces of glass so to maufacture 450 finished pots we need 450*2 900 pounds of steel 4 450 10-4500 ounces of glass Cost: 7 900 50.65 5585 Cost of steel in opening inventory 8 4500 $1.21- $5445 cost of glass in opening inventory