Question Content Area Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Laghari Company makes and sells high-quality glare filters for microcomputer monitors. John Tanaka, controller, is responsible for preparing Laghari's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Laghari expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows:   January February March April Estimated unit sales 36,000 34,500 39,000 38,600 Sales price per unit $80 $80 $75 $75 Direct labor hours per unit 3.0 3.0 2.5 2.5 Direct labor hourly rate $18 $18 $20 $20 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Laghari Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Laghari CompanyProduction Budget (units)For the First Quarter of the Coming Year   January February March Total Unit sales         Desired ending inventory         Total units required         Less: Beginning inventory         Units produced           Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Laghari CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year   January February March Total Units produced         Direct labor hours per unit         Total labor budget (hours)           Question Content Area c. Direct materials cost budget: Laghari CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year   January February March Total Units produced         Cost per unit         Total direct materials

Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Laghari Company makes and sells high-quality glare filters for microcomputer monitors. John Tanaka, controller, is responsible for preparing Laghari's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Laghari expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows:

Required:
Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

1. Prepare the following monthly budgets for Laghari Company for the first quarter of the coming year.