Scarlett Company Master Budget
Scarlett Company is preparing its annual budgets for the year. Accounting assistants furnished the
information shown below for its single product.
Sales budget:
Anticipated volume in units					400,000
Unit selling price					$20.00
Production budget:
Desired ending finished goods units					30,000
Beginning finished goods units					25,000
Direct materials budget:
Direct materials per unit (pounds)					2
Desired ending direct materials (pounds)					30,000
Beginning direct materials (pounds)					40,000
Cost per pound					$3.00
Direct labor budget:
Direct labor hours per unit					0.4
Direct labor rate per hour					$12.00
Please prepare the following budgets for the year:
Sales
Production
Direct materials
Direct labor