the exam. Master Budgets 1. The corn of Sweet Corn, Inc., is harvested throughout June, July, August, and September, and turned into production in each of those months. The whole operation is done by October 1 each year. The following is the company's quarterly sales forecast, based on the previous year's sales and sells the frozen bags at 54 per bag, a price that allows for a small profit per unit. Prepare the sales budget by quarters for the year ending December 31, 2022. Sales Forecast Budgeted sales volume in bags Budgeted selling price Jul-22 3,500 Aug-22 Sept-22 Quarter 3,450 3,590 30.540 Budgeted sales 2. Create the quarterly production budget, Sweet Com starts with the budgeted sales volume from the sales forecast, which becomes the first line of the production budget. The company has a policy of keeping 10% of the net month's planned sales on hand in ending FG inventory. Ending FG Inventory for one month becomes next month's beginning FG Inventory. Determine the budgeted units to be produced each month and the quarter ending Production Budget Jul-22 Aug-22 Sept.-22 Quarter Budgeted sales volume 3,500 3,450 3,590 10,540 Plus: Target ending FG Inventory (in bags) Total units needed Less: Beginning FG Inventory (in bags) 350 Budgeted units to be produced 3 Sweet Corn requires 9 minutes of DL time (.15 hours) per unit, and its hourly labor rate is 510 per hour. Prepare the Direct Labor budget for Sweet Corn, Inc. Direct Labor Budget Budgeted units to be produced Quantity of DL per unit (in-hours) Total budgeted DL hours needed Budgeted DL cost per hour Total budgeted DL cost (labor rate er hour) Jul-22 Aug-22 Sept-22 Quarter 3,495 3,464 3,231 10,190