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Strongbad Boxing Inc. has the following unit sales of boxing gloves for the year 2002: 1st quarter 50,000, 2nd quarter 45,000, 3rd quarter 60,000, and 4th quarter 40,000. The selling price per unit (a pair) is $50. Credit sales are 30% of total sales.
Desired ending inventory is 20% of next quarters expected sales. The fourth quarter’s ending inventory is 7000 units. Beginning inventory for the first quarter is 8000 units.
Direct materials per unit are 3 square feet. Desired ending inventory for direct materials is 30% of the amount needed for production in the next quarter. The fourth quarter’s ending inventory is 30,000 square feet. Beginning inventory for the first quarter is 28,000 square feet. The cost per square foot is $3.00.
Direct labor per unit is 5 hours. Direct labor cost per hour is $4.00.
Please prepare the following budgets from the information above:
Sales Budget
Production Budget
Direct Materials Budget
Direct Labor Budget
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