Description of project:For this assessment task you are required to complete the project. The project will be completed in electronic format and a printed copy should be handed in to your teacher on the due date.The project is made up of three (3) sections and these are: PR1-Practical exercise- Prime solutions Prepare the following budgets for the three months ended 31 August (see Project Task Details table for additional information) : Project Task Details of PR1: Prime solutions InstructionsPrepare the following budgets for the three months ended 31 August using the information and templates (attached) provided below:Budgets requireda) Sales?b) Production?c) Raw Materials Usage?d) Direct Labour?e) Factory Overhead?f) Cost of Production?g) Cost of Goods Sold?h) Trading Statement?Information Mr. Primrose of Prime Solutions manufactures football trophies which he sells to football clubs for $20.00 each. Each trophy requires the following: 1 block of wood $4.00 1 metal plaque 1.00 Direct Labour (15 mins at $20 per hour) 5.00 Manufacturing overhead (100% direct labour) 5.00 Total $15.00 Mr Primrose expects the following sales: June 500 July 600 August 700 September 800 Mr. Primrose requires inventory at the end of every month equal to 40% of the next month's expected sales. Opening inventory at the beginning of each month is equal to 40% pf the month's expected sales.i) complete the budgets using the information provided in more detail for PR1. PR2- Practical exercise - Cash receipts budget (Template attached)1) Prepare the Cash Receipts budget for the months of January, February and March?2) Prepare the Cash budget for the months of January, February and March. (Ignoring GST in this quarter)?3) Complete Cash Receipts budgets using the information provided in formats detailed below for PR2?4) Responses to PR 1 and PR 2 need practical calculations presented in a clear and presentable format. What the answers in word or use excel spreadsheet for making relevant calculations and presentation.?Project Task Details table for additional information :Cash receipts budgetWinloose is preparing its budgets for the quarter ending 31 March. The following data is provided.Actual SalesNovember$80,000December 100,000 Forecast Sales:January $90,000February $70,000March $50,000Estimated collections are: 40% of all sales are on credit 50% are collected in the month of sale, with a 2% discount, 30% in the month following sale, and 20% in the second month after sale,Purchases are estimated at 60% of budgeted sales for the particular month, 80% pf these purchases are paid in the month of purchase and a 3% discount is received, 20% of purchases are paid in the following month.Budgeted cash expenses from January are as follows: Advertising $1,000 Salaries/Wages 8000 Rent 3,500 Interest on Mortgage 500 General expenses 2,000Salaries and wages will increase by 8% from 1 February. Other cash expenses will remain the same.Drawings by the Owner amount to $8,000 per month.The P.A.Y.G. Tax Payable for the December Quarter is $5,000. This amount to be paid by the end of January.The Bank account balance at 1 January is $4,269. PR3- Practical exercise -Presentation and oral questions1) Review the Cash Budget prepared in PR 2 and preparing the presentation on the information contained in that budget. Project Task details table for additional information:The management of Winloose has a policy to keep a minimum of $15000 in cash at the end of each month and wants to utilise any excess of $15000 cash at the end of month for gainful purposes. Critically analyse the cash position of Winloose at the end of every month and suggest the options available to the management to meet the policy requirements.1) Revenue Budgets?2) Operating Budgets?3) Cash Budget?

Budget Templates PR1 Direct Labour Usage 3 Months to 31 August Cash Payment Budget Units Dec Jan Feb Mar Rate per unit O (a) Sales Units Direct labour Purchases %% Sales Selling Price (S Same Month Sales Factory Overhead 1 month June July Aug Total Sept 2 Months Sales Units Cost of Production Cash Sales Other Payments: CI Inventory Raw materials OP Inventory Direct labour Sales price Factory overhead Total cash Collected Total Cash Budget Production Units Jan Feb Mar Total Sales Cost of Goods Sold C.P.U Opening Cash Balance Add receipts Plus Cl Inventory Opening Inventory Cash available Goods available Less payment Less Op Inventory Templates Ending Cash balance Production Cash Receipts Budget % Nov Dec Jan Feb Mar C Sales Raw mats Usage Wood Plaques Total Credit Sales Usage Same Month Cost per unit ($) 1 month 2 months Usage Cash Sales Total cash Collected