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Selected information concerning sales and production for Equipment, Inc. for the month of August 2018 are

below. Use the information to prepare the following budgets: 1) Sales Budget, 2) Production Budget,

3) Direct Materials Budget, and 4) Direct Labor Budget.

Estimated Sales
Basketball	5,000 units at $25 per unit
Football	10,000 units at $40 per unit

Estimated Inventories, August 1, 2018:
Direct Materials			Finished Goods
Plastic	5,500 lbs		Basketball	2,600 units @ $10/unit	$ 26,000
Foam	11,500 lbs		Football	4,100 units @ $12/unit	$ 49,200
				Total Finished Goods	75,200

Estimated Inventories, August, 31, 2018:
Direct Materials			Finished Goods
Plastic	4,000 lbs		Basketball	2,000 units @ $10/unit	$ 20,000
Foam	10,000 lbs		Football	6,500 units @ $12/unit	$ 36,000
				Total Finished Goods	56,000

There are no desired Work in Process Inventories for August 31, 2018:

Direct Materials Used in Production
	Basketball	Football
Plastic	2.25 lb per unit	3.50 lb per unit
Foam	.75 lb per unit	1.50 lb per unit

Cost per pound for Direct Materials
Plastic	$ 4.50
Foam	$ 1.25

Direct Labor Requirements
	Molding	Assembly
Basketball	1.5 DLH per unit	2.25 DLH per unit
Football	2.0 DLH per unit	3.0 DLH per unit
Direct Labor Rate	$ 15.00	$ 20.00

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