3. Black River Company is preparing its annual budget for the year ending December 31, 2016. Its accounting department provided the following data. Product Lime Flavored Non-Alcoholic Beer Sales Budget: Anticipated volume in 400,000 bottles units Unit Selling Price $3.75 Production Budget: Desired ending finished goods units 3,000 bottles Beginning Finished Goods units 5,000 bottles Direct Materials Budget: Direct Materials per unit (Pounds) 1.5 Desired Ending Direct 3,500 Materials in pounds Beginning Direct Materials in Pounds 6,000 $.65 Cost per Pound Direct Labor Budget: Direct Labor Hours Per Unit Direct Labor Rate Per $9.95 Hour Budgeted Income Statement: Total Unit Cost .15
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