Starts Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year:

a. Estimated sales at $38

per unit:

January	365,000	units
February	400,000	units
March	425,000	units
April	425,000	units

b. Estimated finished goods inventories:

January 31	11,000	units
Feb. 28	7%	of next months sales
March 31	7%	of next months sales
April 30	7%	of next months sales

c. Work in process inventories are estimated to be insignificant (zero).

d. Estimated direct materials inventories:

Jan. 31	19,000	pounds
Feb. 28	24,000	pounds
March 31	26,000	pounds
April 30	28,000	pounds

e. Manufacturing costs:

	Per Unit
Direct materials (1.5 lbs. per unit $9 per lb.)	$ 13.50
Direct labor (0.4 hr. per unit $21 per hr.)	8.40
Variable factory overhead ($4 per direct labor hour)	1.6
Fixed factory overhead ($1,500,000 per month allocated using 500,000 units)	3.00
Total per-unit manufacturing costs

Factory Overhead Budget

Cost of Goods Sold Budget