1. Baine ltd has the following budgeted unit sales for the next six-month period.

Month	Unit sales
June	90,000
July	120,000
August	210,000
September	150,000
October	180,000
November	120,000

There were 15,000 units of finished goods in inventory at the beginning of June. Baine ltd plans on to have a desired ending inventory balance that equals 20% of the unit sales for the next month.

Required

Prepare production budgets in units (finished goods) for July and August.

b)

Piston ltd makes all its sales on credit. The details of budgeted credit sales are presented below. Piston collects 60% of credit sales in the month of sale and the remaining 40% is collected in the month after the sale

Month	Budgeted sales
June	280,000
July	320,000
August	360,000

Required Calculate the budgeted cash receipts for the month of July and August.