The Bear Corporation will begin business operations on January 1, 2015. Below is the anticipated SALES BUDGET (in units):

Jan. 20,000

Feb. 90,000

Mar. 80,000

Apr. 30,000

May 30,000

ADDITIONAL INFORMATION

a. Ending finished goods inventory should be equal to 10% of next month's sales projection.

b. Each unit requires 3 pounds of material at a raw material cost of $5 per pound.

c: Labor cost is $10 per unit produced.

d. Ending raw material inventory should be equal to 20% of next month's material requirement.

e. Factory overhead is $18,000 per month of which $8,000 is for depreciation.

f. All costs are paid in the month incurred except for purchases which is paid in the following month.

g. The selling price per unit is $100.

Prepare a SALES BUDGET for the first quarter (January through March).

Prepare a PRODUCTION BUDGET for the first quarter (January through March).

Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.)

Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).