Budgeting Template Part 1: Sales (5 marks) NFT is preparing budgets for the Quarter Ending Sept 30th, 2022. Budgted Sales for the next 6 months are: Month Units July 32000 August 42000 September 32000 October 21000 November 23000 December 36000 Each Unit sells for $100.00 100.00 Sales Budget July August September Quarter Sales Budget Budgeted Sales In Units Selling Price Per Unit Total Budgeted SalesNFT maintains a 8% line of credit for $1,000,000, and a minimum bank balance of $350,000. Interest is calculated and due on a monthly basis. NFT pays a cash dividend of $25,000 in September. NET purchases $25,000 of equipment in September. On July 1, 2022 NFT had $50,000 in the bank. Cash Budget July August September Quarter Beginning Cash Balance Add: Cash Collections Total Cash Available Less: Cash Disbursements Materials Direct Labour Manufacturing OH Selling & Administrative Equipment Dividend Total Disbursements Excess (deficiency) Financing: Borrowing Repayments Interest Total Financing Ending Cash BalancePart 11: Income Statement {2 Marks) Budgeted Income Statement - September 30, 2022 Quarter Sales Cost of Goods Sold Gross Margin Selling 84 Administrative Expense Operating Income Interest Expense Net Income Part 12: Balance Sheet (2 Marks) INFT has land purchased at $1,050,000, Equipment of $751,335.61 Common Shares at $600,000 Retained Earnings $902, 485.71 Budgeted Balance Sheet - September 30, 2022 Quarter Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property & Equipment Land Equipment Total Property & Equipment Total Assets Accounts Payable Common Shares Retained Earnings Total Liabilities & EquityPart 2: Cash Collection (5 marks) All of NFT's sales are on Account. NFT's collection Pattern is: % Type 60.00 Collected in the month of sale 30.00 Collected in the following month 10.00 Uncollectible The June 30th accounts receivable balance of $132,000 will be collected in full. Cash Collections July August September Quarter Accounts Receivable July Sales Aug Sales Sep Sales Total Cash CollectionsPart 3: Production (5 marks) NFT wants an ending inventory equal to 15% of the following month's budgeted sales in units. On June 30th, 21,000 units were on hand. The September 30th desired ending inventory is 20,000. units Production Budget July August September Quarter Budgeted Sales Desired Ending Inventory Total Needs Less Beginning Inventory Required ProductionPart 4: Materials Purchased (5 marks) NFT uses 10 pounds of material per unit. NFT has decided it wants 15% material of the following month's production. On June 30th it had 30,000 pounds of material on had. The material costs $2.00 per pound. NFT September 30th desired ending material is 8,000 pounds Direct Materials Budget July August September Quarter Production Units Materials per unit (pounds) Production Needs Add: Desired Ending Inventory Total Needed Less: Beginning Inventory Materials to be PurchasedPart 5: Cash Disbursements (2 marks) NFT pays $2.00 per pound of material. 1/2 of the months purchases is paid for in the month it is purchased. The other 1/2 is paid the following month. The June 30th Accounts Payable balance was $151,000. Cash Disbursements for Materials July August September Quarter Accounts Payable July Purchases August Purchases September Purchases Total Cash DisbursementsPart 6: Direct Labour (2 marks) At NFT each unit of product requires 0.10 hours of direct labour. NFT has no overtime. NFT pays its manufacturing staff 520 f hr. Direct Labour Budget Julrwr August September Quarter Units of Production Direct Labour per Unit Labour Hours Required Direct Labour Cost per Hour Total Direct Labour Part 7: Cash Disbursements OH (2 marks) NFT manufacturing overhead (OH) is applied to units based on direct labour hours. The variable manufacturing OH rate is $1.50 per direct labour hour. Fixed manufacturing OH is $25,000 per month and includes $5,000 of depreciation. Manufacturing Overhead Budget July August September Quarter Budgeted Direct Labour Hours Variable mfg OH Rate Variable mfg OH Costs Fixed mfg OH costs Total mfg OH costs Less: Non cash Costs Cash Disbursements for mfg OHPart 8: Finished Goods Inventory (2 Marks) Ending Finished Goods Inventory Budget Production Costs per Unit Quantity Costs Total Direct Materials Direct Labour Manufacturing 0H Budgeted Finished Goods Inventory Ending Inventory in Units Unit Product Cost Ending Finished Goods Inventory Part 9: Sales 8: Advertising Budget {2 Marks) NFT variable selling 81 administrative [SEEM expenses are 50.10 per unit sold. Fixed 581A expenses are 540,000 per month. Which includes 55,000 of depreciation. Selling 8: Administrative Expense Budget Julvr August September Quarter Budgeted Sales Variable 5&A Rate Variable Expenses Fixed sax expenses Total 5&A expenses Less: Noncash Expenses Cash 581A Expenses