Experience has shown that 50% percent of the sales of Geraghty Company sales are for cash. Monthly sales are budgeted as follows: $280,000 for October, $240,000 for November, and $320,000 for December. The rest are on credit with 70% of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is expected to be uncollectible. REQUIRED: Prepare a schedule of expected cash collections for the month of December. (8 Marks) B. Maganti Manufacturing Company has budgeted production for next year as follows. First Second Third Fourth g Quarter 3 Quarter 5 luarter 3 Quarter Production in units 80,000 96,000 128,000 1 12,000 Ten pounds of raw materials are required for each unit produced. Raw materials on hand at the beginning of the year total 20,000 lbs. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. REQUIRED: Prepare a direct materials budget for the second quarter. (8 Marks) Kromelow Company manufactures lamp shades. Budgeted sales of lamp shades are 3,200 units in January, 4,800 units in February, and 4,000 units in March. Management believes that an ending inventory equal to 20% of the next month's sales strikes the appropriate balance between excessive and insufficient inventories. Each lamp shade requires 1.5 direct labor hours. The average direct labor rate is $10.00 per hour. REQUIRED: Prepare a production budget for February. (9 Marks)