=+Direct manufacturing labour and manufacturing overhead are paid monthly. Variable manufacturing overhead is incurred at the rate of $14 per direct manufacturing labour-hour. Variable marketing costs are driven by the number of sales visits. However, there are no sales visits during the months studied. Slopes Ltd also incurs fixed manufacturing overhead costs of $11000 per month and fixed non-manufacturing overhead costs of $2500 per month.

Projected sales May 80 units August 100 units June 120 units September 60 units July 200 units October 40 units Direct materials and direct manufacturing labour utilisation and cost Units per board Price per unit Unit Wood 1.25 $120 Board metre Fibreglass 4.8 6.25 Metre Direct manufacturing labour 5 50 Hour The beginning cash balance for 1 July 2015 is $10000. On 1 October 2014, Slopes Ltd had a cash crunch and borrowed $30000 on a 6% one-year note with interest payable monthly. The note is due on 1 October 2015. Using the information provided, you will need to determine whether Slopes Ltd will be in a position to pay off this short-term debt on 1 October 2015.

Required 1 Prepare a cash budget for the months of July to September 2015. Show supporting schedules for the calculation of receivables and payables.