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1. Prepare a Sales Budget. Toyota Motor is Preparing bugets for the quarter that ends in December 31^st.

Budget Sales of Yaris Model for the next months are:

September 4,000 units

October 10,000 units

November 6,000 units

December 5,000 units

January 5,000 units

Selling Price is $16,000 per unit.

2. The Management of Toyota Motor wants ending inventory to be equal to 1,000 sales units. On September 30, 2,000 units were on hand. Prepare a production budget.

3. Prepare a Direct Material Budget, using the amount of $7,000 for the Direct Materials required per unit. Management dont want material on hand at the end of each month.

4. Prepare a Direct Labor Budget. For the three months, the direct labor workforce will be paid for a flat rate of $10/hour. Required work hours are 2,000 hours per month.

5. Prepare the Overhead Budget for the Quarter with the following information:

Indirect labor Oct = $10,000; Nov = $8,000; Dec = $8,000

Indirect Material Oct = $2,000; Nov = $2,000; Dec = $2,000

Utilities Oct = $5,000; Nov = $4,000; Dec = $6,000

Rent Oct = $50,000; Nov = $50,000; Dec = $50,000

Insurance Oct = $2,100; Nov = $2,000; Dec = $1,800

Maintenance Oct = $2,000; Nov = $21000; Dec = 2,500

Bonus! Write down the six steps in the Decision Making Process.

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