2 Part 3: (5 marks) 1 NFT wants an ending inventory equal to 15% of the following month's budgeted sales in units. On June 30th, 60,000 units were on hand. 3 The September 30th desired ending inventory is 80,000. units 4 5 Production Budget 6 July August September Quarter 7 8 Budgeted Sales 9 Desired Ending Inventory 0 Total Needs 51 52 Less Beginning Inventory 53 Required Production 54 55 Budgets 88RR8888888891 25 26 Part 2: (5 marks) 27 All of NFT's sales are on Account. 28 NFT's collection Pattern is: 29 % Type 60.00 Collected in the month of sale 35.00 Collected in the following month 5.00 Uncollectible 33 The June 30th accounts receivable balance of $132,000 will be collected in full. 85 Cash Collections 36 July August September Quarter 38 39 Accounts Receivable 40 July Sales 132,000.00 46,800.00 273,000.00 132,000.00 741,000.00 42 Aug Sales 43 630,000.00 367,500.00 997,500.00 44 Sep Sales 45 738,000.00 738,000.00 46 47 Total Cash Collections $ 600,000.00 $ 903,000.00 $ 48 1,105,500.00 $ 2,608,500.00 49 o con Units 26000 Part 1: (5 marks) 5 NFT is preparing budgets for the Quarter Ending Sept 30th, 2022. 6 Budgted Sales for the next 6 months are: 7 Month 8 July 9 August September October November December 14 Each Unit sells for $30. 35000 41000 15000 20500 31000 * - Sales Budget July August September 19 Sales Budget Quarter 21 Budgeted Sales in Units 22 Selling Price Per Unit 23 Total Budgeted Sales 26,000 35,000 $ 30.00 $ 30.00 $ $ 780,000.00 $ 1,050,000.00 $ 41,000 30.00 $ 1,230,000.00 $ 102,000 30.00 3,060,000.00