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In order to determine the loan amount, your manager asks you to prepare the following budgets: sales

budget, production budget, direct materials purchases budget, direct labor budget, and overhead budget.

Directions Prepare each budget of this assignment in one Excel file. Be sure to show your calculations and

label your work for full credit. The Forty Company estimates for the next year are as follows: Quarter $1$ sales:

$530,000$ units Quarter $2$ sales: $765,000$ units Quarter $3$ sales: $1,055,000$ units Quarter $4$ sales: $825,000$

units Quarter $1$ of the following year sales: $600,000$ units Price of the product $$25$ Beginning finished goods

inventory: $50,000$ units The company policy is to have $10\%$ of next quarter's sales in ending inventory. The

product contains only two materials $($Material A and Material B$).$ The product requires four units of Material

A costing $$2.$ The product requires two units of Material B costing $$1.$ The beginning materials inventory

for Material A is $315,000.$ The beginning materials inventory for Material $B$ is $157,500.$ Company policy is

to have $15\%$ of next quarter's material needs in ending inventory Desired ending inventory for the year in

Material $A$ is $450,000.$ Desired ending inventory for Material $B$ is $240,000.$ The direct labor required for

each product is $25$ hours at an average rate of $$9$ per hour. The variable overhead rate is $$5$ per direct labor

hour. Fixed overhead is expected to be $$50,000$ per quarter.

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