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The Director of Operations and Sales has secured a distribution channel for your new beverage line. It is anticipated that TBC will be able to sell a case of your beverage for $45 each. Sales are estimated to be 15,000 units in January and 18,000 units in February. Each case will require 3 oz. of sugar syrup (costing $3.00 per oz.) and 2 oz. of flavoring (cost $2.50 per oz.). Production will also require 30 minutes of direct labor at a rate of $18 per hour. Desired inventory levels are:
January 1
February 28
March 31
Beginning inventory
Finished goods
4,500
4,900
5,000
Direct materials: flavoring
8,500
9,100
9,200
Direct materials: sugar syrup
11,200
12,000
13,000
problem 1: Prepare a sales budget, production budget, direct materials budget for flavoring and sugar syrup, and a direct labor budget. Prepare all budgets in excel. (You will prepare January and February).
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