ABC CompanyABC Company makes steel tool cabinets for offices. They are in the process of preparinga Master Budget including the Operating budget, Cash Statement, Income Statementand Balance Sheet for 2020. The yearly budget is broken into quarters. The year end is31st December 2020. Your group has been requested to compile a master budget for thefiscal year 2020.Package is to include the following budgets;1. Sales budget for each quarter2. Production budget for each quarter3. Purchasing Budget for each quarter4. Direct labour budget for each quarter5. Manufacturing overhead budget for each quarter6. Selling and Administration budget7. Work sheets for Collections and Disbursements8. Budgeted Income Statement9. CVP Income Statement10. Budgeted Cash Statement11. Budgeted Balance SheetAdditional details:Sales price per filing cabinet is$750There are800tool cabinets in finished goods inventory at the end of 2019 with avalue of $3,60,000. At the end of each quarter, ABC Company requires to have900units in finished goods inventory.Each cabinet uses75sq. ft. of steel during the manufacturing process. The cost ofsteel for 2020 is estimated to be $8per sq. ft.ABC Company currently has30,000sq. ft.of steel in the beginning inventory. Atthe end of each quarter, ABC Company wants to have60,000sq. ft.of endinginventory.Each cabinet requires6machine hours and3direct labour hrs to produce.Direct Labour costs $21per direct labour hour.ABCCompany allocates manufacturing overhead costs based on the estimated machinehours. Estimated manufacturing overhead cost for 2020 are$9,45,000and are all variable.For each quarter, it is estimated that40% of sales will be cash and60% will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20% pay in thefollowing quarter. Credit sales from Q4 2019 were$13,00,000Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter theyoccurred.Assume operating expenses occur evenly throughout the year and are all paid in cash.For each quarter,70% of material purchases are paid for in cash in the quarter ofthe purchase and30% are paid in the following quarter. Purchases of materials fromQ4 2019 were$15,00,000ABC CompanyAdditional details continued:ABC Company will pay$60,000in dividends in Q4Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain aminimum cash balance of $10,000 in the bank for each quarter.Budgeted sales volumes are:Q16450Q26900Q36750Q47200Selling and Administration expenses for the budgeted year are as follows;Variable Cost:Delivery costs are based on$0.3per sales unit.Commissions are based on0.1% of sales value.Fixed Costs:$Accounting & professional services1800Administrative & Sales Salaries77000Advertising9000Computer costs4200Depreciation35000Office Supplies2300Printing1400Insurance1200Property taxes500Rent20000Utilities3000Total Fixed Costs155400ABC Company will purchase a new machine on 1/1/2020 worth $700,000 and will make two equalpayments. The first payment will be in Q1 and the second in Q3. Assume the machine waspurchased at the beginning of the year.Taxation is30% on taxable income and paid at the end of Q 4 each year.Balance sheet information as at 31st December 2019 is as follows;PPE$1,00,000Accumulated Depreciation$1,00,000Common Stock$2,80,000Retained Earnings$1,45,000For Cost of goods sold (COGS);Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory.Interest of $9000on loans is paid in total at the end of the year and is a fixed cost.

how to calculate

Ending Finished Goods Inventory BudgetCost ElementQuantityCostTotalDirect Materials+ Direct Labour+ Manufacturing Overhead= Product Cost Per UnitX Ending Inventory in UnitsEnding Finished Goods Inventory?