1. The company expects to sell 40,000 bottles in quarter 1, 50,000 in quarter 2, 93,000 quarter 3 and 36,000 in quarter 4.
2. Each bottle requires 6 ounces of Chemical A and 10 ounces of Chemical B.
3. The desired ending inventory in finished goods is 20 percent of next quarters sales and the desired ending inventory for material is 15 percent of next quarters production requirements.
4. There are 11,000 bottles of stain remover, 57,000 ounces of chemical A, and 97,000 ounces of chemical B on hand at the beginning of the first quarter.
5. At the end of the fourth quarter, the company must have 12,000 bottles of stain remover, 60,000 ounces of Chemical A and 102,000 ounces of Chemical B to meet its needs in the first quarter of 2008.
6. The cost of Chemical A is $.12 per ounce and the cost of Chemical B is $.09 per ounce. The selling price is $9.95 per bottle.
7. Direct labor cost is $.60 per bottle and variable cost of overhead is $.90 per bottle. Fixed manufacturing overhead is $40,000 per quarter.
8. Variable selling and administrative expense is 4 percent of sales, and fixed selling and administrative expenses is $50,000 per quarter.

Required; Using the template provided:

Prepare a production budget for each quarter.

Prepare a direct materials purchases budget for each quarter (one for Chemical A and one for Chemical B).

Prepare a budgeted income statement for each quarter of 2009.

	q1	q2	q3	q4	total
Unit Sales	40,000	50,000	93,000	36,000	219,000
Desired End	10,000	18,600	7,200	12,000	12,000
Less Begin	11,000	10,000	18,600	7,200	11,000
Units Produced	39,000	58,600	81,600	40,800	220,000
	39,000	58,600	81,600	40,800

Please help!

C D E F F G T T J K L M N 0 P R S T U VW X Y A Production Budget Z 91 qZ 93 94 total Uniti Sales Desind End Less Begin Units Produced 40,000 10.000 11,000 39,000 50.000 18.000 10.000 50.800 83,000 7,200 18,800 1.800 38,000 210,000 Sanr 12.000 7.200 11000 40,000 220,000 Purchases A 91 02 G3 94 total Unite Produced 39.000 58.800 8 1.800 40,800 220 000 Ounces Per Bottle Ounces for Production Desired End 15% of next month Les Bagin In A Ounces Purchased 42 G3 94 total Purchases E 91 Unite Produced Ounces Per Bottle Ounces for Praduction Desired End 15% of next month Les Bagin In Ounces Purchased Income Statement 94 41 02 4 92 40.000 50,000 93,000 38.000 Salas COGS GM SKA M Ni A B D E F G H | J L M N O P Q R S T U V W Y N Uunces Purchased Income Statement q2 q1 40,000 93 94 50,000 93,000 36,000 Sales COGS GM S&A Ni COGS A 6 ounces X.12 x 40,000 B 10 ounces X.09 x 40,000 DL per bott .60 x 40,000 Variable 0.90 x 40,000 Fixed OVH $40,000 COGS 28800 36000 24000 36000 40,000 164800 S&A Variable St.04 x $398,000 Fixed S&A S&A $15,920 $50,000 $65,920