You have been hired by the Rangers Corporation and they manufacture industrial dye. The company is preparing its $20$X$9$ master budget and has presented you with the following information:

A$.$ Estimated sales in gallons of dye for January through June $20$X$9$ are as follows:

January $9,000$

February $11,000$

March $16,000$

April $14,000$

May $13,000$

June $12,000$

Each gallon of dye sells for $ $15$

B$.$ Each gallon of dye has the following standard quantities and costs for direct material and direct labor:

$1\mathrm{.}4$ gallons of direct material $($some evaporation takes place during processing$)$ X $$2\mathrm{.}00$ per gallon $$2\mathrm{.}80$

$0\mathrm{.}5$ direct labor X $ $10$ per hour $5\mathrm{.}00$

C$.$ Variable overhead is applied to the product on a machine$-$hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $$0\mathrm{.}40$ per machine hour.

D$.$ There is no beginning Work$-$in$-$Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of $1,100$ gallons of direct material at a standard cost of $$2\mathrm{.}00$ per gallon. There are $500$ gallons of dye in Finished Goods Inventory at the beginning of the year.

E$.$ The ending finished goods inventory should include $5$ percent of next month$$s sales. The ending inventory of raw materials should be $5$ percent of next month$$s needs.

Please note: You will be preparing budgets for the first quarter listed below:

Requirements:

Please prepare the following budgets:

A$.$ Sales Budget

B$.$ Production Budget

C$.$ Purchases Budget

D$.$ Labor Budget

E$.$ Variable Overhead Budget