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Edgeworth Box Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

	Type of Box
	C		P
Direct material required per 100 boxes:
Corrugating medium ($0.15 per pound)	20	pounds	30	pounds
Paperboard ($0.30 per pound)	30	pounds	70	pounds
Direct labor required per 100 boxes ($18.00 per hour)	0.25	hour	0.50	hour

The unit production costs for each product are expected to be the same this year and next year.

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

Indirect material	$	15,750
Indirect labor		75,000
Utilities		37,500
Property taxes		27,000
Insurance		24,000
Depreciation		43,500
Total	$	222,750

The following selling and administrative expenses are anticipated for the next year.

Salaries and fringe benefits of sales personnel	$	112,500
Advertising		22,500
Management salaries and fringe benefits		135,000
Clerical wages and fringe benefits		39,000
Miscellaneous administrative expenses		6,000
Total	$	315,000

The sales forecast for the next year is as follows:

	Sales Volume		Sales Price
Box type C	500,000	boxes	$	135	per hundred boxes
Box type P	500,000	boxes		195	per hundred boxes

The following inventory information is available for the next year.

	Expected Inventory January 1		Desired Ending Inventory December 31
Finished goods:
Box type C	10,000	boxes	5,000	boxes
Box type P	20,000	boxes	15,000	boxes
Raw material:
Corrugating medium	5,000	pounds	10,000	pounds
Paperboard	15,000	pounds	5,000	pounds

1) Sales Budget:

2) Production Budget:

3) Direct - material budget:

4) Direct - Labor budget:

5) Production overhead budget:

6: Selling and Administrative expense budget: