1. Data regarding Bengal Corporation are as follows:

(a). Budgeted sales for the year 2020 are:

January: 20,000 units

February: 35,000 units

March: 35,000 units

April: 45,000 units

May: 60,000 units

June: 75,000 units

July: 75,000 units

August: 80,000 units

September: 65,000 units

October: 50,000 units

November: 25,000 units

December: 15,000 units

(b). The Selling Price per unit is usually 175 Taka. However, due to the increase in demand, the price increased to 190 Taka in the second and third quarter of the year.

(c). 30% of the sales each month are in cash, and the rest are on account. The cash sales are received the day the sales are made, and the on account's collection pattern is given in instruction no. (d).

(d). On account collection patterns are as follows: 45% is collected in the following month of sales, and the remaining 55% is collected the second month following the month of sales. Previous Accounts receivables of 8,877,750 Taka (from June 30) will be being collected in July.

(e). The company wants to end finished goods inventory equal to 25% of the following month's estimated sales units.

(f). The company purchases 60% of its inventory in the month before the sale, keeping it in the ending inventory and 40% in the month of sale. Payment for inventory is made in the month following the purchase.

(g). The company requires 3 kilograms of raw materials to manufacture one unit of the final product, for 3 Taka per kilogram.

(h). The company requires 0.15 hours of direct labours to make one product unit, and the labourers are paid 12 Taka per hour.

(I). The company has an incentive policy for the labourers for which any extra hour the labourers work beyond 8000 hours each month; they will get paid at a rate of 15 Taka for every additional hour worked (overtime payment).

(j). Manufacturing Overhead is applied to units of products based on direct labour hours. The company uses a variable manufacturing overhead rate of 1.50 Taka for each unit produced. Fixed manufacturing overhead is 110,000 Taka, which includes 35,000 Taka of factory related Depreciation Expense.

(k). Variable selling and administrative expenses are 4.20 Taka per unit. Fixed selling and administrative expenses are 1000000 Taka, which includes 33,000 Taka of Depreciation Expense.

(l). The company paid 2500000 Taka in July, 2800000 Taka in August and 5000000 Taka in September.

(m). The company spent the following amounts on purchasing non-current assets in the year 2020:February 50000 Taka

June 100000 Taka

July 800000 Taka

September 2100000 Taka

December 500000 Taka

(n). The cash balance on July 1, 2020, is 230,000 Taka. Due to the coronavirus crisis, the company requires a minimum of 4000000 Taka at the beginning of each month, from August onwards.

(o). Due to the coronavirus crisis, in September, the company spent an additional 10000000 Taka in cash to support its labour financially.

Required:

(I). Prepare the following budget for the third quarter of the year 2020: Sales Budget, Expected Cash Collection, Production Budget, Direct Material Budget, Expected Cash payment for Direct materials, Direct Labor Budget, MOH Budget, Selling & Admin Budget, Cash Budget.

(ii). Calculate the production cost per unit of Bengal Corporation's finished good. What should be the cost of budgeted finished goods inventory?

(iii). Identity at least two possible ways Bengal Corporation could overcome the issue of cash deficiency the company might face (in September) while operating the business. You must explain in detail how your stated solution could help the company overcome its cash deficiency problem.

2. (I). Imagine that you are a factory manager of a manufacturing company. Explain, in detail, the difficulties regular factory operation might have faced in 2020 when Bangladesh went into lockdown due to Covid -19. You must explain in detail what sort of difficulties you might have faced about the production process, any issue regarding direct materials or direct labours, or any other issue regarding the factory operation.

(ii). With the discussion that you have explained in Question No. 2 (I), now imagine that theGovernment of Bangladesh is planning for the second phase of lockdown from next month. However, you can keep your factory open but only with a limited number of employees. Explain, in detail and your own words, the major plans you will create for the future to ensure your workers' safety and the smooth production process. You must explain how you willsafeguard the employees and labourers so that the virus does not spread within your factory; you mustalso include how you plan on carrying your production process in the event of complete lockdownwithin the country (i.e., any issue regarding DM or DL that you have mentioned in your previousdiscussion and state your solutions so that your factory will not have to come across those problemsagain).