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 32,000 42,000 32,000 1,06,000 Selling Price Per Unit x $ 100 * $ 100 x $ 100 * $ 100 Total Budgeted Sales $320,000 $420,000 $320,000 $1,060,000Part 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 $132,000 $132,000 July Sales $192,000 $96,000 $288,000 ($320,000 x 60%) ($320,000 x 30%) Aug Sales $252,000 $126,000 $378,000 ($420,000 x 60%) ($420,000 x 30%) Sep Sales $192,000 $192,000 ($320,000 x 60%) Total Cash Collections $324,000 $348,000 $318,000 $990,000Part 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 17,300 40,500 47,200 1,05,000 Materials per unit (pounds) 10 10 10 10 Production Needs 1,73,000.00 4,05,000.00 4,72,000.00 10,50,000.00 Add: Desired Ending Inventory 60,750 70,800 8,000 1,39,550 Total Needed 2,33,750 4,75,800 4,80,000 11,89,550 Less: Beginning Inventory 30,000 60,750 70,800 1,61,550 Materials to be Purchased 2,03,750 4,15,050 4,09,200 10,28,000Part 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 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 32,000 42,000 32,000 1,06,000 Desired Ending Inventory 6,300 4,800 20,000 31,100 Total Needs 38,300 46,800 52,000 1,37,100 Less Beginning Inventory 21,000 6,300 4,800 32,100 Required Production 17,300 40,500 47,200 1,05,000