. Required:

UBS company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March). The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: . January 6,000 units February 5,000 units . March 6,000 units Projected selling price is $40.00/unit. Your Production Manager gave the following information: . Ending inventory is to be 20% of next month's production need **rounded to the nearest 10 11250 units 1,000 units. . April's Projected Sales 5,500 units, May December 20X5 Ending Inventory was The Manufacturing Manager has estimated the following: . Each unit will require 4 grams of material . Material in Ending inventory is 20% of next month's needs . December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labour will be projected at 0.75 hours of Direct Labour per unit . Direct Labour Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labour hours . Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: -Selling and Administrative Expenses are projected to be a monthly cost of: Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 . Other $500 Cash Receivable: o December's Sales were $10,000 o 80% of sales is collected in the month in which they were made o 20% of sales collected in the following month in which they were made o Bad Debts is negligible Accounts Payable: o 80% of Payables is paid for in the current month o 20% of Payables is paid for in the following month o December's Payables was $75,000 -Federal Income Tax is estimated at 22% average. UBS company: o has a $20,000 cash balance for the beginning of January o pays Dividends of $8,000 to be paid in March o pays projected Federal Income tax in March For the Master Budget, you are expected to prepare the following: Sales Budget Cost of Goods Sold Budget . Selling & Administrative Expenses Budget Production Budget Direct Materials Budget plus a Schedule of Expected Cash Disbursements Direct Labour Budget Manufacturing Overhead Budget . Budgeted Income Statement plus a Budget of Collections of Accounts Receivable . Cash Budget