Bradman Ltd has the following budgeted unit sales figures for the six months from July:

Jul 800

Aug 600

Sep 700

Oct 900

Nov 1,000

Dec 900

The company makes and sells one product, the unit costs and selling price of which are:

Selling price $70 Material A 2Kg at $5 per Kg $10

Material B 1.5Kg at $6 per Kg $9

Labour 2 hours at $10 per hour $20

Variable overhead $8 per hour $16

The following information is also available: Customers are allowed one months credit. Production takes place in the month of sales. Closing stock of finished goods are equal to 10% of the next months sales. Materials are purchased in the month before use and are paid for two months after purchase. Wages and variable overhead are paid for in the month of production.

Fixed overhead is $3,000 per month (including depreciation of $500) payable in the month incurred.

The opening cash balance at 31 Aug is expected to be $20,000 in hand.

Required

(a) Prepare for September only: (i) Sales budget (in units and $) (ii) Production budget (Units only) (iii) Raw material purchases budget for both A and B (in Kg and $)

(b) Prepare the Cash Budget for the months of September and October only.