3. Budget preparation

April May June July Expected unit sales 20000 24000 16000 18000 Sales Required:

A. Prepare the following budgets for Lallan and Company for the second quarter of 2022. Show all the supporting calculations:

i. Production budget in units

ii. Direct labour budget in hours and dollars

iii. Direct material budget.

iv. Sales budget

B. Discuss at least three behavioural considerations in the profit-planning and budgeting process.

4. Budget preparation

The following information is provided for Office Supplies Limited, a retail store.

September, October and November sales amounted to $300000, $320000 and $400000, respectively.

Sales for December and January are budgeted at $440000 and $420000, respectively.

Receipts are expected to be 50 percent in the month of sale, 38 per cent in the month following the sale and ten per cent in the second month following the sale. Two percent of sales are expected to be uncollectable.

Required:

A. Calculate the budgeted cash receipts for November, December and January.

B. Will you be able to estimate the total receipts for September and October. Provide justifications.

Lallan and Company makes and sells upmarket carry bags for laptops. You have been given the task of preparing Lallan and Company's budget. The following data has been assembled for 2022: Estimates for the months April to July 2022: 2022 April 20000 $80 May 24000 $80 June 16000 $75 July 18000 $75 3.5 4 4 3.5 Expected unit sales Sales price per unit Direct labour hours per unit Direct labour hourly rate Direct materials cost per unit Additional information $16 $16 $15 $10 $15 $10 $10 $10 The direct labour rate includes wages, all employee-related benefits and the employer's share of payroll tax. Labour saving machinery will be fully operational by June. As of 1 June, the entity's enterprise agreement calls for an increase in direct labour wages that is included in the direct labour rate. Lallan has the policy of carrying 50 per cent of the following month's projected sales in inventory