Using the attached budget parameters prepare a sales, production, direct materials, direct labor budget for the month of July.

Budget Parameters 1. Projected units sales: June sales 120,000; July, 140,000; August 150,000; September 170,000; October 140,000. 2. Sales price per unit, $15.00. 10% of sales are collected in the month of sales and 90% the month following 3. Units in ending inventory each month should equal 10% of next month sales. Beginning inventory in units was 14,000 units. 4. Raw material required per unit is 2 pounds @ $3.00 per lb. The beginning raw material inventory is 14,000 lbs. All raw material costs are paid in the month following purchase. 5. Ending inventory required at the end of each month is 5% of next month needs. 6. Direct labor required to produce one units is 25 direct labor hour. The hourly rate is $10.00 7. Variable overhead costs for the quarter are projected to be $575,000 and fixed overhead costs are projected to be $225,000 monthly. 115,000 direct labor hours are expected to be worked in the quarter. Depreciation expense is $20,000 per month. 8. Sales and administrative expenses are projected to be: salaries $275,000 per month, commissions 2% of sales dollars and other expenses are expected to be $75,000 per month plus 3% of sales dollars. All variable costs are paid in the following month. 9. The beginning cash balance is $50,000. No Capital expenditures are planned for the quarter nor will any dividends be paid during the quarter. Instructions: using the parameters listed above, prepare the following budgets for the 3" quarter: 1. Sales and expected collections. 2. Production 3. Direct materials, include the cost and expected disbursements 4. Direct labor, include the cost 5. Manufacturing overhead 6. Sales and administrative. 7. Cash budget. VERY IMPORTANT: budgets are to be presented on an excel worksheet using the following parameters. 1. The font size is to be 11. 2. Column A (description) is to be 38 wide. 3. Columns B through E are to be 13 wide 4. Orientation is portrait 5. Fit to one page 6. Sheet to show gridlines 7. Lines are to be default width. Using the above parameters all budgets can be presented on one page using approximately 45 lines. Any submission not using the required parameters will not be graded