1 (5 Marks) Mitchell Company had the following budgeted sales for the last half of last year: Sales (Units) July 50,000 August 55,000 September 60,000 October 70,000 November 80,000 December 85,000 The selling price per unit is $5 per unit. Collections on credit sales: 60% in month of sale 30% in month following sale 10% in second month following sale In July, June 30th Account Receivable balance of $50,000 will be collected in full. The management of the Mitchell Company wants ending inventory to be equal to 10% of the following months' budgeted sales in units. On July 1, 10,000 units were on hand. AT Mitchell Company, four pounds of material are required per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following months production. On June 20, 10,000 pounds of material are on hand. Material cost is $0.50 per pound. One-half of a months purchase is paid for in the months of purchase, the other half is paid in the following month. On June 30th, the account payable balance is $10,000 Prepare Sales Budget Cash Collections Schedule Production Budget Cash Payments Schedule Direct Materials Budget