Required:
1. Prepare a monthly master budget for Teddy for the year ended December 31, 2013, including the following schedules:
Sales Budget & Schedule of Cash Receipts
Production Budget
Direct Materials Budget & Schedule of Cash Disbursements
Direct Labour Budget
Manufacturing Overhead Budget
Ending Finished Goods Inventory Budget
Selling and Administrative Expense Budget
Cash Budget
2. Prepare a budgeted income statement and a budgeted statement of retained earnings for the year ended December 31, 2013, using absorption costing.
3. Prepare a budgeted balance sheet at December 31, 2013.