Sales for the final quarter of the prior year total 1,600 units. Expected sales (in units) for the current year are:1,440 (Quarter 1),960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4).Sales for the first quarter of the following year total 1,920 units.The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter.b.Company policy calls for a given quarter's ending finished goods inventory to equal 70%of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,008 units, which complies withthe policy.The product's manufacturing costis $211 per unit, including per unit costs of $84 for materials (6 lbs. at $14 per lb.),$96 for direct labor (4 hours $24 direct labor rate per hour),$19 for variableoverhead, and $12 for fixed overhead. Annual fixed overhead consists, incurredevenly throughout the year, consist of depreciation on production equipment, $25,400;factory utilities,$31,800, and other factory overhead of $6,352.c.Company policy also calls for a given quarter's ending raw materials inventory to equal50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 lbs of materials, which complies with the policy.The company expects to have 5,760 lbs. of materials in inventory at year-end.The company has no work in process inventory at the end of any quarter.d.Sales representatives' commissions are 16% of sales and are paid in the quarter of thesales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter.e.Quarterly general and administrative expenses include $33,000 administrative salaries,rent expense of $20,000per quarter,insurance expense of $16,000 per quarter, straight-linedepreciation of $16,000 per quarter,and 1% monthly interest on the $100,000 long-term note payable (12% annually).f.Income taxes will be assessed at 30%, and are paid in the quarter incurred.

Requirement:Prepare the Sales Budget for Posluszny Inc..Sales for the final quarter of the prior year total 1,600 units. Expected sales (in units) for the current year are:1,440 (Quarter 1),960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4).Sales for the first quarter of the following year total 1,920 units.The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter.

Requirement:

Prepare the production budget for Posluszny Inc..Company policy calls for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is1,008units, which complies with the policy.Expected sales (in units) for the current year are:1,440(Quarter 1),960(Quarter 2),1,280(Quarter 3), and1,280(Quarter 4).Sales for the first quarter of the following year total1,920units.

RequirementPrepare the Direct Materials Budget for Posluszny Inc. Company.

Company policy calls for a given quarter's ending raw materials inventory to equal50% of next quarter's expected materials needed for production. The prior year-end inventory is3,312lbs of materials,which complies with the policy. The company expects to have5,760lbs. of materials in inventory at year-end. The product's manufacturing cost is $211per unit, including per unit costs of $84for materials(6lbs. at $14per lb.), $96for direct labor (4hours $24direct labor rate per hour), $19for variable overhead, and $12for fixed overhead.