The number of labour hours available in the assembly department in each of these months is 1450. 

a. Prepare a labour budget for each of the three months ending 31 March 2016. 

b. What advice would you give the production manager concerning any shortfall in, or surplus of, labour hours in February 2016? 

Katerina plans to manufacture glassware, starting on 1 October 2016. 

The following information is available for the four months ending 31 January 2017: 

• Each piece of glassware will be sold for $8, which is a mark-up of 300 per cent on material costs. 

• Closing inventory is to be maintained at 20 per cent of next month's sales. 

• In October, 250 pieces of glassware are expected to be sold. This is to increase by 20 per cent in November and by a further 30 per cent in December. However, in January and February sales are expected to drop to 180 pieces for each month. 

• Each month Katerina expects that 50 per cent of sales will pay in cash and will receive a cash discount of 5 per cent. Of the remaining 50 per cent, only 60 per cent will pay the following month and the remainder will pay the month after that. 

• Katerina will pay for all of her purchases a month in arrears, except to one supplier who wants immediate payment and will give a 2 per cent discount to Katerina if she pays in the month of purchase. This supplier will amount to 25 per cent of her purchases.

• Katerina will invest $2000 into the business, which will be placed in the bank on 1 October 2016. Her monthly overheads are expected to be $520 per month and she will pay herself 50 per cent of the closing bank balance (before the deduction of drawings) each month as wages. For each of the four months ending 31 January 2017 prepare: 

a. A sales budget 

b. A production budget 

c. A material purchases budget 

d. A trade receivables budget 

e. A trade payables budget 

f. A cash budget 

g. A master budget.