1. Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to pro- duce the forecasted number of units produced.
Q: a. Construct the direct labor budget for the next two months
A: The direct labour budget is made by considering the expected number of units to be produced, number…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Explanation: 1. Variable Manufacturing overhead = Budgeted direct labor hours x Variable…
Q: A Management Accounting student has been tasked to produce a production volume budget for a company.…
A: Budget means the expected value for future. Raw material means the goods which is processed to make…
Q: 1. Prepare a production budget and a direct-labor budget for Spiffy Shades Corporation by month and…
A: The Direct Labor budget is used to calculate the number of labor hours that will be needed to…
Q: Rients Corporation is a service company that measures its output by the number of customers served.…
A: To calculate: Spending variance Spending variance is due to the variance in price and not activity.…
Q: Match each definition with its related term by selecting the appropriate term in the dropdown…
A:
Q: The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours.…
A: The cost budgeted for manufacturing overhead is the cost to incur on manufacturing.
Q: How do I prepare the direct labor budget for the quarter ended March 31, 20X1?
A: In order to prepare, Direct Labour Budget, it is necessary to calculate production units of the…
Q: a. Assuming that the desired ending inventories of materials A and B are 4,000 and 6,000 pounds,…
A: Working: Sales Units Price per unit Total Sales Urban 6000 53 318,000.00 Rural…
Q: a. Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the…
A: a. Budget for factory overhead For October Particulars Amount Variable factory overhead…
Q: The manufacturing overhead budget at Levetron Corporation is based on budgeted direct labor-hours.…
A: A predetermined overhead rate is a rate at which the manufacturing overheads are allocated to the…
Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…
A: Manufacturing Overhead Budget This budget contains all manufacturing costs except direct materials…
Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…
A: Manufacturing overhead refers to the costs incurred in the operations of the manufacturing process.…
Q: Assume a company's direct labor budget for July estimates 10,000 labor-hours to meet the month's…
A: Budgeted cash disbursement for fixed manufacturing overhead = Budgeted fixed manufacturing overhead…
Q: he manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The…
A: Solution:- Calculation of The February cash disbursements for manufacturing overhead on the…
Q: The production supervisor of the Machining Department for Niland Company agreed to the following…
A: Calculations:
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: 1.) Direct labor budget as per forcasted unit is attached above along with workings -Direct labor…
Q: Invent Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor…
A: Here in this question, we are required to calculate predetermine overhead rate for November.…
Q: Estimate manufacturing costs and operating expenses a. Selling and administrative budget
A: Budget: Budget is the future financial plans established by the business entity that reflect the…
Q: A company prepares a five-year budget. This budget would be considered a(n) a. strategic budget b.…
A: Introduction Budget is a financial plan for future period. There are many types of Budgets prepared…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Budget - A budget can be defined as a financial plan or an estimation of revenues, expenditure,…
Q: he manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The…
A: Budgeted direct labor-hours 4300 Variable manufacturing overhead rate × $ 8.5 Variable…
Q: The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The…
A: The book in which the company records all its transactions initially is termed as journal book. From…
Q: Direct Labor Budget The production manager of Rordan Corporation has submitted the following…
A: Labor budget is prepared to measure the number of direct labor hours required to produce the goods.…
Q: The production manager of Rordan Corporation has submitted the following forecast of units to be…
A: Labour cost is the amount to be paid to labour for hours worked. In labour cost budget, labour cost…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Answer- Calculation of Manufacturing OH : Yuvwell Corporation Manufacturing Overhead Budget…
Q: Prestridge Corporation is a service company that measures its output by the number of customers…
A: 1. Expenses under planning budget = $41500 + (1000 * 31) + (500 *31) + $38900 = $41500 + $31000 +…
Q: Clarks Company's master budget includes $360,000 for equipment depreciation. The master budget was…
A: Introduction: A flexible budget is one that changes depending on the activity or volume levels of a…
Q: At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct…
A: Direct labor rate = Direct labor cost/hour of production = $110,000/8000 = $13.75/hour Direct…
Q: Haylock Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The…
A: GIVEN : Direct labour hours = 8,300 Per direct labour hour = $1.40 Fixed manufacturing overhead per…
Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…
A:
Q: Assume a company’s direct labor budget for July estimates 10,000 labor-hours to meet the month’s…
A: Manufacturing overheads means all type of indirect costs and expenses which are incurred for…
Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…
A: Formula: Fixed overhead per Direct labor hour = Fixed manufacturing overhead / Direct labor hours
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Manufacturing overhead costs are costs which are incurred for the production of units but which…
Q: The following various elements relate to Whitfield, Inc.'s cash budget for April of the current…
A: Budgeting is an important function to be carried out by every enterprise as a part of their decision…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Introduction Manufacturing overhead budget includes all the costs related to production such as…
Q: fixed manufacturing overhead is $100,370 per month, which includes depreciation of $8,980. All other…
A: Depreciation is a non cash expense as it doesn't affect any cash inflow of cash outflow and hence…
Q: The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours.…
A: Depreciation expense is not paid in cash. So the depreciation of $3,750 will not be included in the…
Q: The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours.…
A: Manufacturing overhead are the indirect cost incurred in the production of the goods. It includes…
Q: Determine the total budgeted sales for the entire quarter ending March 31st.
A: Given: Budgeted Sales for 5 months Month Budgeted sales (in Units) January 16250 February…
Q: The manufacturing overhead budget at Formica Corporation is based on budgeted direct labor-hours.…
A: The manufacturing overhead is the indirect costs which are involved in the product process. It…
Q: The Robbins Company is preparing its cash payments budget. The following items relate to cash…
A: SOLUTION- BUDGET- It is the Financial Plan for the particular period. it is the estimation of…
Q: In Paige Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct…
A: Introduction: A static budget forecasts revenue and expenses over a specific time period and…
Q: The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The…
A: Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost Estimated units of allocation…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: The question is based on the concept of Cost Accounting. The total number of labor hours required to…
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: Fixed cost are fixed in nature,it does not change with change in units of production.It remains…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Forecast sates volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" 10" Frame 12" 16" Frame East 8,755 3,686 Central 6,510 3,090 West 12,348 5,616 For the year ending December 31, 20Y9, unit sales are expected to Follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" 10" the frame is expected to Increase to 17 and the unit selling price for the 12" 16" frame is expected to increase to 32, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31,. 20Y8, Over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 51. 20Y9.Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Cash. 26,000 Finished Goods.............................................. 16,900 Work in Process.............................................. 4,200 Materials.................................................... 6,400 Prepaid Expenses............................................ 600 Plant and Equipment......................................... 82,000 Accumulated DepreciationPlant and Equipment............. 32,000 Accounts Payable............................................ 14,800 Common Stock. 1.50 par..................................... 30,000 Retained Earnings............................................ 83,100 159,900 159,900 Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials................................... 30.00 Direct labor....................................... 840 Factory overhead: Depreciation of plant and equipment............ 4,000 Other factory overhead......................... 1,400 4.80 Selling expenses: Sales salaries and commissions..................... 12,800 13.50 Advertising....................................... 13,200 Miscellaneous selling expense..................... 1,000 2.50 Administrative expenses: Office and officers salaries......................... 7,800 7.00 Supplies.......................................... 500 1.20 Miscellaneous administrative expense.............. 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances, federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y9. 2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January I, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash 85,000 Accounts Receivable........................................ 125,600 Finished Goods............................................ 69,300 Work in Process............................................ 32,500 Materials.................................................. 48,900 Prepaid Expenses.......................................... 2,600 Plant and Equipment....................................... 325,000 Accumulated DepreciationPlant and Equipment........... 156,200 Accounts Payable.......................................... 62,000 Common Stock. 10 par.................................... 180,000 Retained Earnings.......................................... 290,700 688,900 688,900 Factory output and sales for 20Y9 are expected to total 200,000 units of product, which are to be sold at 5.00 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials.................................. 1.10 Direct labor...................................... 0.65 Factory overhead: Depreciation of plant and equipment........... 40,000 Other factory overhead........................ 12,000 0.40 Selling expenses: Sales salaries and commissions.................... 46,000 0.45 Advertising...................................... 64,000 Miscellaneous selling expense................... 6,000 0 25 Administrative expenses: Office and officers salaries........................ 72,400 0.12 Supplies......................................... 5,000 0.10 Miscellaneous administrative expense............. 4,000 0.05 Balances of accounts receivable, prepaid expenses, anti accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 30,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.15 per share are expected to be declared and paid in March, June. September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 75,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y9. 2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
- Forecast sales volume and sales budget Sentinel systems Inc. prepared the following sales budget for 20Y8: At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending October 31, 20Y8. The unit selling price for the Home: Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be increased 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease.ase of actual unit sales for the year ended October 31, 20Y8, over budget. Place your answers in a columnar table with the following format: 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Percentage 20Y9 Actual Increase Budgeted Units (Decrease) Units (rounded) 3. Prepare a sales budget for the year ending December 31, 201Y9Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for March: A. Estimated sales for March: Batting helmet.................. 1,200 units at 40 per unit Football helmet................. 6,500 units at 160 per unit B. Estimated inventories at March 1: Direct materials: Finished products: Plastic............ 90 lbs. Batting helmet....... 40 units at 25 per unit Foam lining....... 80 lbs. Football helmet...... 240 units at 77 per unit C. Desired inventories at March 31: Direct materials: Finished products: Plastic............ 50 lbs. Batting helmet....... 50 units at 25 per unit Foam lining....... 65 lbs. Football helmet...... 220 units at 78 per unit D. Direct materials used in production: In manufacture of batting helmet: Plastic............................... 1.2lbs. per unit of product Foam lining......................... 0.5 lb. per unit of product In manufacture of football helmet: Plastic............................... 3.5lbs. per unit of product Foam lining.......................... 1.5 lbs. per unit of product E. Anticipated cost of purchases and beginning and ending inventory of direct materials: Plastic........................ 6 per lb. Foam lining................... 4 per lb. F. Direct labor requirements Batting helmet: Molding Department............. 0.2 hr. at 20 per unit Assembly Department............ 0.5 hr. at 14 per hr. Football helmet: Molding Department............. 0.5 hr. at 20 per hr. Assembly Department............ 1.8 hrs. at 14 per hr. G. Estimated factory overhead costs for March: Indirect factory wages 86,000 Depreciation of plant and equipment 12,000 Power and light 4,000 Insurance and property tax 2,300 H. Estimated operating expenses for March: Sales salaries expense 184,300 Advertising expense 87,300 Office salaries expense 32,400 Depreciation expenseoffice equipment 3,800 Telephone expenseselling 5,800 Telephone expenseadministrative 1,200 Travel expenseselling 9,000 Office supplies expense 1,100 Miscellaneous administrative expense 1,000 I. Estimated other income and expense for March: Interest revenue 940 Interest expense 872 J. Estimated tax rate:30% Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March. 4. Prepare a direct labor cost budget for March. 5. Prepare a factory overhead cost budget for March. 6. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be 15,300, and work in process at the end of March is desired to be 14,800. 7. Prepare a selling and administrative expenses budget for March. 8. Prepare a budgeted income statement for March.Capital expenditures budget On January 1, 20Y2, the controller of Omicron Inc. is planning capital expenditures for the years 20Y2-20Y5. The following interviews helped the controller collect the necessary information for the capital expenditures budget: Director of Facilities A construction contract was signed in late 20Y1 for the construction of a new factory building at a contract cost of 10,000,000. The construction is scheduled to begin in 20Y2 and be completed in 20Y3. Vice President of Manufacturing: Once the new factory building is finished, we plan to purchase 15 million m equipment in late 20Y3. I expect that an additional 200,000 will be needed early in the following year (20Y4) to test and install the equipment before we can begin production. If sales continue to grow, I expect we'll need to invest another 1,000,000 in equipment in 20Y5. Chief Operating Officer: We have really been growing lately. I wouldn't be surprised if we need to expand the size of our new factory building in 20YS by at least 35%. Fortunately, we expect inflation to have minimal impact on construction costs over the next four years In addition. I would expect the cost of the expansion to be proportional to the size of the expansion. Director of Information Systems: We need to upgrade our information systems to wireless network technology. It doesn't make sense to do this until after the new factory building is completed and producing product. During 20Y4, once the factory is up and running, we should equip the whole facility with wireless technology. I think it would cost us 800,000 today to install the technology. However, prices have been dropping by 25% per year, so it should be less expensive at a later date. Chief Financial Officer: I am excited about our long-term prospects. My only short-term concern is managing our cash flow while we expend the 4,000,000 of construction costs on the portion of the new factory building scheduled to be completed m 20Y2. Use this interview information to prepare a capital expenditures budget for Omicron Inc. for the years 20Y2-20Y5.
- Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y8, the following tentative trial balance as of December 31, 20Y7, is prepared by the Accounting Department of Mesa Publishing Co.: Cash 26,000 Accounts Receivable 23,800 Finished Goods 16,900 Work in Process 4,200 Materials 6,400 Prepaid Expenses 600 Plant and Equipment 82.000 Accumulated DepreciationPlant and Equipment 32,000 Accounts Payable 14.800 Common Stock. 1.50 par 30,000 Retained Earnings 83,100 159,900 159,900 Factory output and sales for 20Y8 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y8, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials 30.00 Direct labor B.40 Factory overhead: Depreciation of plant and equipment 4,000 Other factory overhead 1,400 4.30 Selling expenses: Sales salaries and commissions 12,800 13.50 Advertising 13,200 Miscellaneous selling expense 1,000 2.50 Administrative expenses: Office and officers salaries 7,800 7.00 Supplies 500 1.20 Miscellaneous administrative expense 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y8 taxable income will be paid during 20Y8. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y8. 2. Prepare a budgeted balance sheet as of December 31,20Y8, with supporting calculations.Forecast sales volume and sales budget Sentinel Systems Inc. prepared the following sales budget for 20Y8: Sentinel Systems Inc. Sales Budget For the Year Ending December 31, 20 Y8 Unit Sales Unit Selling Total Product and Area Volume Price Sales Home Alert System: United States 1,700 200 340,000 Europe 580 200 116,000 Asia 450 200 90,000 Total 2,730 546,000 Business Alert System: United States 980 750 735,000 Europe 350 750 262,500 Asia 240 750 180,000 Total 1,570 1,177,500 Total revenue from sales 1,723,500 At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales Home Alert System Business Alert System United States 1,734 1,078 Europe 609 329 Asia 432 252 For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the Home Alert System is expected to increase to 250, and the unit selling price for the Business Alert System is expected to be decreased to 820, effective January 1, 20Y9. Instructions 1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Place your answers in a columnar table with the following format: Unit Sales, Year Ended 20Y8 Increase (Decrease) Actual Over Budget Budget Actual Sales Amount Percent Home Alert System: United States Europe Asia Business Alert System: United States Europe Asia 2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to lie used for preparing the sales budget for the year ending December 31, 20Y9- Place your answers in a columnar table similar to that in part (1) but with the following column heads. Round budgeted units to the nearest unit. 20Y8 Actual Units Percentage Increase (Decrease) 20Y9 Budgeted Units (rounded) 3. Prepare a sales budget for the year ending December 31, 20Y9.EXERCISE 8–7 Cash Budget [LO8–8] Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Managementhas prepared the following summary of its budgeted cash flows: [picture] The company’s beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company’s cash budget for the upcoming fiscal year Particulars 1Q 2Q 3Q 4Q Year Cash balance. Beginning Add:Collection from customer Total cash available Less:Disbursement Purchase of inventory Selling and…
- EXERCISE 8–7 Cash Budget [LO8–8] Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Managementhas prepared the following summary of its budgeted cash flows: [picture] The company’s beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company’s cash budget for the upcoming fiscal yearDirect Materials and Direct Labor Budgets [LO4, LO5]The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterUnits to be produced . . . . . . 5,000 8,000 7,000 6,000In addition, the beginning raw materials inventory for the 1st Quarter is budgeted to be 6,000 grams and the beginning accounts payable for the 1st Quarter is budgeted to be $2,880. Each unit requires 8 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter.Each unit requires 0.20 direct labor-hours and direct…