1. Create a sales budget.
Apple Preparing Budgets for Quarter that Ends in December
144,000 units Oct 190,000 Units November 260,000 Units December
150,000 units January 150,000 Units Selling Price $699
2. Management of Apple
Wants ending inventory equal to 10,000 sales units You can find more information on
September 30, 2000 units had been on hand. Make a batch
3. Prepare a direct Material
Spend $370 on Direct Materials to Budget
per unit. Management don’t want material on hand at the end of each
4. Prepare a direct labor contract
Budget. Spend three months with the direct labor workforce
You will be paid a flat $15 an hour Minimum work hours required are 3,000
Hours per month
5. Make sure you have the Overhead
The following information is needed to budget for quarter:
labor Oct = $20,000; Nov = $16,000; Dec = $16,000 Indirect Material
Oct = $12,000; Nov = $12,000; Dec = $12,000 Utilities Oct = $7,000;
Nov = $9,000; Dec = $10,000 Rent Oct = $150,000; Nov = $150,000;
Dec = $150,000 Insurance Oct = $1,100; Nov = $1,000; Dec = $1,200
Maintenance Oct = $20,000; Nov = $21,000; Dec = 20,500
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