You have been hired as the new budget controller for Goldhouse Inc. The firm has been in business for two years and currently makes one product, the Supreme house. Using the information below, make a master budget to present to company executives for quarter 1. It will consist of the operating budget and the financial budget with the following components:

Sales budget

Production budget

Direct materials purchase budget

Direct labor budget

Overhead budget

Selling and administrative expenses budget

Ending finished goods inventory budget

Cost of goods sold budget

Budgeted income statement

Cash budget

All budgets should be in table format. An explanatory narrative should be included to describe computations made in each budget.

All sales and purchases are for cash. The cash balance on January 1 was $500,000. Goldhouse Inc. requires a minimum monthly cash balance of $1000. If there is a cash shortage, money is borrowed at a rate of 10 percent and is repaid at the end of the quarter along with the interest due. Cash borrowed at the end of the quarter is repaid at the end of the following quarter. On January 1, there were no loans.

The first four budget is calculated

3. Direct Material Purchased Budget

Description	January	February	March	April	Quarter Total
Budget production units	58,000	68,000	70,000	70,000
Plastic Pellets(Per unit)	10lbs	10lbs	10lbs	10lbs
Production Needed	5,80,000	6,80,000	7,00,000	7,00,000
(+) Ending raw material	3,00,000	3,50,000	3,50,000	3,50,000
Total Needed	8,80,000	1,030,000	1,050,000	1,050,000
(-) Beginning raw material (50% of the months estimated sales)	2,50,000 (50,000x10)/2	3,00,000 (60,000x10)/2	3,50,000 (70,000x10)/2	3,50,000 (70,000x10)/2
Purchase Needed (lbs.)	6,30,000	7,30,000	7,00,000	7,00,000
Cost ($) (for 10 lbs.)	7	7	7	7
Total Budget of Plastic Pellets	4,410,000	5,110,000	4,900,000	4,900,000	$19,320,000
Insulation (Per unit)	5lbs	5lbs	5lbs	5lbs
Production need	2,90,000	3,40,000	3,50,000	3,50,000
(+) Ending raw material	1,50,000	1,75,000	1,75,000	1,75,000
Total Needed	4,40,000	5,15,000	5,25,000	5,25,000
(-) Beginning raw material (50% of the months estimated sales)	1,25,000	1,50,000	1,75,000	1,75,000
Purchase Needed (lbs.)	3,15,000	3,65,000	3,50,000	3,50,000
Cost ($) (for 5 lbs.)	3	3	3	3
Total Budget of Insulation	9,45,000	1,095,000	1,050,000	1,050,000	$4,140,000
Grand Total	Total Budget of Plastic Pellets + Total Budget of Insulation				$23,460,000

4. Direct Labor Cost Budget Ended April

Description	January	February	March	April	Quarter Total
Production per units	58,000	68,000	70,000	70,000
Labor hours (per unit)	3	3	3	3
Total Labor hours needed	1,74,000	2,04,000	2,10,000	2,10,000
Direct Labor Cost ($) (Per hour)	12.50	12.50	12.50	12.50
Total Direct Labor Cost	2,175,000	2,550,000	2,625,000	2,625,000	7,615,000

Find

-Overhead budget

-Selling and administrative expenses budget

-Ending finished goods inventory budget

-Cost of goods sold budget

-Budgeted income statement

-Cash budget

Pertinent Information Unit selling price $235 Projected sales in units for the first quarter Direct labor usage data: Direct material usage data: Inventory policy requires that there are sufficient materials on hand at the beginning of the month to produce 50% of that months estimated sales. This was the case on January 1. Monthly overhead data: Monthly overhead is estimated using a flexible budget formula and is measured in direct labor hours. Monthly selling and administrative data: Monthly selling and administrative expenses are estimated using a flexible budget formula and are measured in units sold. Finished goods inventory: Desired ending inventory for each month is 80 percent of next month's sales. 1. Sales Budget for ended April 2. Production Budget for ended April Pertinent Information Unit selling price $235 Projected sales in units for the first quarter Direct labor usage data: Direct material usage data: Inventory policy requires that there are sufficient materials on hand at the beginning of the month to produce 50% of that months estimated sales. This was the case on January 1. Monthly overhead data: Monthly overhead is estimated using a flexible budget formula and is measured in direct labor hours. Monthly selling and administrative data: Monthly selling and administrative expenses are estimated using a flexible budget formula and are measured in units sold. Finished goods inventory: Desired ending inventory for each month is 80 percent of next month's sales. 1. Sales Budget for ended April 2. Production Budget for ended April