The ABC company manufactures bookcases that sell for $400. Budgeted sales for first months are as follows:

Month	Budgeted Sales (units)
January	1000
February	1500
March	2500
April	2000

Part C

The company wants to amintin an inventory of oak equal to 20% of the next months requirements. Materials inventory on Jan 1 consisted of 1100 sq feet of oak

The company estimates an inventory of oak on hand at the end of March of approximately 8000 sq feet

Required

Prepare purchases budget in $ for Direct materials for each month and in total for first quarter

Part D

Each bookcase requires 5 hr of DLH at a cost of $8.00 per hour. Variable manufacturing overhead is budgeted at $2 per DLH

Monthly fixed overhead consists of the following :

Supervisors salaries	$6000
Insurance	$ 2000
Depreciation of equipment	$500
Depreciation of factory	$10000

REQUIRED

1. Prepare a direct labour budget for each month and total the quarter

2. Prepare a monthly manufacturing overhead budget and total the quarter