Each section requires a budget to be completed.

s Henderson Co. estimates sales units as follows: June July August 5,000 6,000 5,500 1. September sales are estimated to be 6,100 units. The sales price in June is $15, but will increase to $25 per unit in July and $30 beginning in August. Prepare the sales budget. 2. The target ending inventory for a given month is equal to 20% of the following month's unit sales. Prepare the production budget. 3. Each unit requires 6 pounds of raw materials at a price of $.50 per pound. Ending inventory for materials for a given month is 10% of the production materials needed in the following month. September will require 35,000 pounds of materials to meet production needs. Create the purchases budget for June, July, and August. 4. Each finished unit requires 30 minutes in the cutting department. Employees are paid $15 per hour, but is expected to decrease to $12 per hour beginning in July. Using this information, create the direct labor budget. 5. The company uses direct labor hours as its allocation base. The variable manufacturing overhead rate is $2.00 per direct labor hour. Fixed overhead per month is estimated at $30,000. Straight-line depreciation for factory equipment each month is $2,000. Using this information, create the factory overhead budget. 6. The company's sales consist of cash and credit sales. The company expects to collect 20% of all sales in cash, 30% of all credit sales in the month of the sale and 65% in the month following the sale. 5% of all credit sales is expected to be uncollectible. June's beginning accounts receivable balance was $50,000. Using this information, determine the cash collections for June, July, and August. 7. The company pays its vendors 50% of the direct materials cost in the month of purchase and the rest in the following month. June's beginning accounts payable balance as $7,500. All direct labor and overhead are paid in the month incurred. Using this information, determine the cash disbursements for June, July, and August. 8. The company has a $0 beginning cash balance and requires a minimum cash balance of $20,000 each month. If this minimum is not met, they will borrow from the bank at a rate of 5% per month. They will borrow in $1,000 at the beginning of each month and will repay at the end of the month as soon as possible. Interest is paid at repayment. Interest is not compounded for simplicity