Question

Budgeted income statement and supporting budgets for three months Newport Inc. gathered the following data for use in developing the budgets for the first quarter (June, July, August) of its fiscal year: a. Estimated sales at $36 per unit: June July 300,000 units 400,000 units 500,000 units 500,000 units August September b. Estimated finished goods inventories: May 31 June 30 July 31 August 31 16,000 units 5% of next month's sales 5% of next month's sales 5% of next month's sales c. Work in process inventories are estimated to be insignificant (zero). d. Estimated direct materials inventories: May 31 June 30 July 31 August 31 35,000 pounds 40,000 pounds 45,000 pounds 50,000 pounds

Answer 1

Sales Budget
	June	July	August	First Quarter
Sales Units	300000	400000	500000	1200000
Sales Price per unit	$                36.00	$             36.00	$                        36.00
Sales Revenue	$      10,800,000	$   14,400,000	$              18,000,000	$               43,200,000
Production Budget
	June	July	August	First Quarter
Sales Units	300000	400000	500000	1200000
Add : Desired Ending Inventory	20000	25000	25000	25000
Total Units required	320000	425000	525000	1225000
Less : Beginning Inventory	16000	20000	25000	16000
Production Required	304000	405000	500000	1209000
Purchases Budget
	June	July	August	First Quarter
Production Required	304000	405000	500000	1209000
Raw Material Per unit (lbs)	1.5	1.5	1.5	1.5
Raw Material for Production	456000	607500	750000	1813500
Add : Desired Ending Inventory	40000	45000	50000	50000
Total Needs	496000	652500	800000	1863500
Less : Beginning Inventory	35000	40000	45000	35000
Raw Material Purchase (lbs)	461000	612500	755000	1828500
Cost per lbs	$                   4.00	$                4.00	$                           4.00	$                            4.00
Raw Material Purchase	$        1,844,000	$     2,450,000	$                3,020,000	$                  7,314,000
Direct Labor Budget
	June	July	August	First Quarter
Production Required	304000	405000	500000	1209000
Direct Labor hours per unit	0.4	0.4	0.4	0.4
Direct labor hours required	121600	162000	200000	483600
Cost per hour	$                25.00	$             25.00	$                        25.00	$                          25.00
Direct Labor cost	$        3,040,000	$     4,050,000	$                5,000,000	$               12,090,000
Factory Overhead cost budget
	June	July	August	First Quarter
Direct labor hours required	121600	162000	200000	483600
Variable Overhead rate	$                   4.00	$                4.00	$                           4.00	$                            4.00
Budgeted variable overhead	$            486,400	$         648,000	$                    800,000	$                  1,934,400
Budgeted fixed overhead	$        1,200,000	$     1,200,000	$                1,200,000	$                  3,600,000
Direct Labor cost	$        1,686,400	$     1,848,000	$                2,000,000	$                  5,534,400

As per HOMEWORKLIB RULES we are supposed to answer 4 parts, i have answered 4, so kindly post others separately