AutoSave Off Cost Accounting - Saved to this PC- O Search shaz25379@gmail.com S 7 File Home Insert Design Share Comments Layout References Mailings Review View Help 1...l... .....l...l...2...l...3...l...4...l...5...l...6...... 7... Springton makes and sells a single product, black handbags, at a price of $1,600 each. During the three months to December 31,2020, he sold 1.500 handbags and turnover was the same for each month He expects the volume of sales to remain unchanged for January 2021 but to increase by 5% in February, and by a further 20% in April. The price of the handbags will be increased by 10% in January and by a further 5% in June. The following budgeted information is presented to assist in the preparation. Month Budgeted sales S 880,000 Budgeted purchases S 600,000 January February 924,000 750,000 T...6...1...5...1...4...1...3...1...2...1...1...1 March 924,000 820,000 April 1,108,800 820,000 May 1,250,000 968,000 June 1,285,000 1,250,000 Notes: Effective January 1, 2021 Springton's collection on sales will be as follows: 70% collected in the month of sale The balance will be collected one month following sale Required: a) Prepare a sales budget for the handbags for the six months to June 2021, Page 1 of 6 640 words Focus 100% Type here to search 9:18 AM 4/14/2021 AutoSave Off Cost Accounting - Saved to this PC- O Search shaz25379@gmail.com S 7 File Home Insert Design Layout References Mailings Review View Help Table Design Layout Share Comments 1 .....::::: 1 2... 3.!!!!!! 4. ...5'''''''''''''''... 1,250,000 June 1,285,000 Notes: Effective January 1, 2021 Springton's collection on sales will be as follows: 70% collected in the month of sale The balance will be collected one month following sale Required: a) Prepare a sales budget for the handbags for the six months to June 2021, showing quantity, unit price and total projected sales monthly. b) Prepare the Cash collection schedule, with a total column, for the first three months. c) State two (2) advantages of budgeting. Page 1 of 6 Page 1 of 6 640 words Focus 100% Type here to search 9:18 AM 4/14/2021