The Bear Corporation will begin business operations on January 1, 2012. Below is the anticipated SALES BUDGET (in units):
Jan. __0,000
Feb. __0,000
Mar. __0,000
Apr. __0,000
May __0,000
1.To complete the unit sales forecast, use your student identification number to fill in the blanks. If your number contains a "0", use "3" instead.
Example: Student ID number is 146073578. The sales forecast would be:
January 10,000
February 40,000
March 60,000
April 30,000
May 70,000
ADDITIONAL INFORMATION
a.Ending finished goods inventory should be equal to 10% of next month's sales projection.
b.Each unit requires 3 pounds of material at a raw material cost of $5 per pound.
c:Labor cost is $10 per unit produced.
d.Ending raw material inventory should be equal to 20% of next month's material requirement.
e.Factory overhead is $18,000 per month of which $8,000 is for depreciation.
f.All costs are paid in the month incurred except for purchases which is paid in the following month.
REQUIRED: Using Excel, in good form:
Prepare a SALES BUDGET for the first quarter (January through March).
Prepare a PRODUCTION BUDGET for the first quarter (January through March).
Prepare a Raw Materials PURCHASES BUDGET for the first quarter (Jan. through Mar.)
Prepare a CASH DISBURSEMENTS budget for the first quarter (January through March).