Brass Instruments Inc. is a worldwide musical part manufacturing firm based in North America. After many years in the market, the Peterborough division, which produces one product called "brass instruments stand", reaches a spike on the sales level. The management wants to have a significant investment to expand the facility and increase production, but it is requesting from the division to prepare a budget for the third quarter of 2021

The actual sales from 2021 are

May 92000 units

June 104000 units

The division manager projected the following sales

July 2021 110,000 units

August 2021 225000 units

September 2021 122000 units

October 2021 137000 units

November 2021 162000 units

The selling price is $13 per unit

1. From previous experience management has determined that finished goods ending inventory equal to 20% of the next months unit sales are required to fit the buyer's demands

2. The brass instruments stand requires one types of raw materials. Plastic

a. Each brass instrument stand requires 1.4 kilograms of plastic at the cost of $1.5 per kilogram

b. The supplier of plastic tends to somewhat erratic so brass instruments Inc. finds it necessary to maintain an inventory balance equal to 20% of the material needed for the next month as a precaution against stock outs. The direct materials on June 30 is 37240 kg

3. The begining accounts payable will consist of $ 116298

4. Brass instruments incpays for 50% of a months purchases in the month of purchase and 50% in the following month

5. The manufacturing overhead is based on direct labour hours the workers receive an average of $16.00 per hour including employee benefits. Each brass instruments stand takes 18 minutes to complete

6. Brass instruments allocate the manufacturing overhead based on direct labour hours the variable manufacturing overhead is as follows maintenance $0.40; utilities 0.60$; Indirect labour $0.60; indirect materials $0.40

7. The monthly fixed manufacturing overhead costs are as follows:

Janitorial $2200

Insurance $ 1450

Depreciation $14200

Property Taxes $ 2000

Salaries $44000

8. Brass Instruments Inc allocate the selling and administration expenses based on units sales; The variable selling and administration rate is $ 1.5 per unit sales

9. The monthly selling and administrative expenses are

salaries $62000

Other fixed cost $3600

Insurance $ 1100

Depreciation $ 2800

Advertising $ 12000

10. Sales are on account(credit) 50% of the sales are collected during the month of sales and 50% the following month this was the same collection pattern as in previous years

11. The company wants to maintain at the end of each month a minimum bank balance of $500000. In case the company has a deficiency of money or is not able to reach this minimum bank balance, the company can borrow from a line of credit at the rate of 3% per annum. All borrowing is considered to happen on the first day of the month, and repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $ 1000. It pays interest monthly. The cash balance on June 30 is $184000

12. In August, $ 680,000 of new equipment to update operations will be purchased with cash. Please ignore the depreciation of this new asset

13. Three months insurance is prepaid on the firstday of the first month of the quarter

14. The company has a common stock beginning balance of $ 1060226

Prepare the budget for 2022 the third quarter, for brass instruments inc. for the following schedules

g) Prepare the manufacturing Overhead budget for the third quarter

h) Prepare the unit cost

i) Prepare the selling and administrative expenses budget for the third quarter

j) Prepare the cash budget for the third quarter

k) Prepare the income statement

l)Prepare the statement of financial position (use excel)