The following inventory information is available. The unit production costs for each product are expected to be the same this year and the following year.

	Expected Inventory January 1	Desired Ending Inventory December 31
Finished Goods
Type N	10,000 bottles	5,000 bottles
Type S	20,000 bottles	15,000 bottles
Raw Material
Pigment A	15,000 pounds	5,000 pounds
Liquid medium	5,000 pounds	10,000 pounds

The raw material is

Raw Material
Pigment A	15,000 pounds	5,000 pounds
Liquid medium	5,000 pounds	10,000 pounds

No other information is in the problem. What is it that is needed?

Required:

Required:

Prepare a master budget for V & T Faces, Inc., for the next year. Assume an income tax rate of 40 percent. Include the following:

1. Sales budget
2. Production budget
3. Direct-material budget
4. Direct-labor budget
5. Production-overhead budget
6. Selling and administrative expense budget
7. Budgeted income statement