Thunder Creek Company expects sales of 18,000 units in January 2018, 24,000 units in February, 30,000 units in March, 34,000 in April, and 36,000 in May. The sales price is $34 per unit. Prepare a sales budget 2018 Budget #1: Sales Budget Feb Q1 Total pril Jan Mar May Budgeted units to be sold Sales price per unit Total Sales Thunder Creek wants to finish each month with 20 % of next month's sales in units. Prepare a production budget. (When entering answers in the production budget, use the sales budget for your cell references. Enter all values as positive-without a minus sign--in row 18.) Hint: Beginning inventory for the period is equal to the ending inventory of the previous period. 2017 2018 Budget # 2: Production Budget Dec Jan Feb Mar Q1 Total pril May Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25 % of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive-without a minus sign--in row 3 2018 Q1 Total Budget #3: Direct Materials Budget Feb April Jan Mar Budgeted units to be produced Direct materials (pounds) per unit Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed Less: Direct materials in beginning inventory (pounds) Budgeted purchase of direct materials Direct material cost per pound Budgeted cost of direct materials purchases Thunder Creek Company's workers require 30 minutes of labor to produce each unit of product. The labor cost is $20 per hour Prepare a Direct Labor Budget. (When entering answers in the direct labor budget, use the direct materials budget for your cell references.) 2018 Budget # 4: Direct Labor Budget Feb Q1 Total Jan Mar Budgeted units to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials $1.00 per DLH; Indirect Labor Cost $1.30 per DLH; Maintenance $1.20 per DLH The Fixed Overhead Costs per month are: Salaries of $40,000, Depreciation $20,000 and Maintenance $10,000. Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use '-ROUND' functian to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor haurs 2018 Budget #5: Manufacturing Overhead Budget Budgeted units to be produced VOH cost per unit Budgeted VOH Budgeted FOH Depreciation Jan Feb Q1 Total Mar Salaries and maintenance Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours (DLHr) Predetermined overhead allocation rate per DLHr Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units Begin by calculating the projected cost to produce each unit in 2018 based on projected sales. (H int: In "Cost per unit" table, cell references come from Direct Materials, Direct Labor, and Manufacturing Overhead budgets. Use '-ROUND' function to round the fixed manufacturing overhead cost per unit to two decimal places Prepare a Cost of Goods Sold Budget. (Hint: Units per month calculated using cell references to both sales budget and production budget.) Cost per unit Direct material cost per unit Direct labor cost per unit Manufacturing overhead cost per unit Total projected manufacturing cost per unit 2018 Q1 Total Budget #6: Cost of Goods Sold Budget Jan Feb Mar Beginning Finished Goods Inventory, 3,600 units. Units produced and sold in 2018 Cost per unit Units per month