Case Study 3 (10 marks) Childcare Furniture Ply Lid manufactures a variety of desks, chairs, tables and book shelves that are sold to childcare centres in NSW. The accountant of the desk division is currently preparing the budget for the 1st quarter of this year. The following sales have been forecast for the ist quarter. January 4,000 desks February 5,000 desks March 6,500 desks Each desk requires 2.5 metres of wooden planks and 2 hours of direct labour. Each desk sells for $250. Wooden planks costs $20 per metre, and at the end of each month there is enough wood remaining to cover 20 per cent of the next month's production requirements. The division incurs a cost of $30 per hour for direct labour, including on-costs. The division ends each month with enough finished goods to satisfy 30 per cent of the following month's sales. Required: In an Excel spreadsheet construct and complete the following budget schedules. (a)Sales budget (1 marks) January February March Sales units 4,000 Selling price per unit $250 Sales revenue $1,000,000 (b)Production budget (units) (2.5 marks) January February March Sales units 4,000 Add ending inventory 1,500 2.100 Total units required 5,500 Less opening inventory 1.000 Planned production 4,500 (c) Raw materials purchases (4 marks) January February March Planned production 4.500 Raw material per unit 3 Raw material required for production 13.500 Add ending inventory of raw materials 3.270 3,500 Total requirements 16,770 Less ending inventory of raw materials 2700 Planned purchases of raw material in metres 14.070 Cost per metre $20 Planned purchases of raw material in dollars $281.400