Black Ltd produces a product for travelling. You have been asked to prepare the monthly budget for the quarter ending 30 June of the current year.

• The marketing manager has forecasted the sales for the three months as follows:

April 1 000 units

May 1 200 units

June 1 000 units

The selling price per units is $300

• The business plans to have 40% of the next month's sales in closing stock at the end of the previous month.

Opening April stocks will be 400 units.

Closing stocks at the end of June are expected to be 500 units

• All sales are made on credit. The money is expected to be received as follows:

10% in the month of sale

75% in the month following sale

15% in the second month following sale

Amounts to be collected in April and May in respect of previous months sales are $200,000 and $80,000 respectively

• Each unit produced requires 8 metres of materials at $10 per metre

• Direct labour costs $36 per hour with 4 hours needed for each unit produced

• Other variable costs are expected to be $20 per unit

• Fixed manufacturing costs amount to $8 000 per month, but are charged into production at $20 per unit

• Fixed selling and administration costs are $20,000 per month

• All expenses, apart from labour, are paid for at the end of the month after the month of purchase. Amounts paid in April in respect of costs (excluding GST) from the previous month are:

Materials $20 000

Other variable costs $10 000

Fixed manufacturing costs $ 8 000

Fixed selling & administration costs $20 000

• The balance of GST collected and paid for in a particular month is forwarded to, or refunded by, the ATO in the following month. The balance of GST owing from March is $15 000

• The opening April cash balance is expected to be $10 000

You are required to prepare the following budgets for the three months of April, May and June:

1. Sales (in units and $)
2. Production
3. Materials (in units and $)
4. Direct Labour
5. Other variable costs
6. Cost of Goods sold
7. Schedule of Collection Budget
8. Cash Budget
9. Profit and Loss Statement for the quarter ended 30 June of the current year