Faker Inc. is preparing budgets for the upcoming quarter, March to May. Budgeted sales (in units) for the next five months are: March April May June July 26,600 14,800 13,000 16,500 12,200 Below is additional information that January be relevant in preparing the budgets. The company produces and sells frying pans for $35.00 per unit. To guard against inventory stockouts, the company has a policy of maintaining an ending inventory of 10% of the following month's budgeted sales. At the beginning of March, Faker Inc. had 1,680 frying pans in inventory. Each unit of output requires 1 kilogram of direct material. To guard against stockouts of raw materials, the company has a policy of maintaining a raw materials inventory of 15% of the following month's production. At the beginning of March, Faker Inc. has 2,604 kilograms of direct materials on hand. Each kilogram of direct materials costs $4.00. Each unit of output requires 0.1 hours (6 minutes) of direct labour and employees are paid a standard rate of $26.00 per hour. Faker Inc. applies overhead using a variable rate of $14.00 per direct labour hour. The fixed overhead is $26,200 per month. Fifty percent of sales are made in cash. The remaining 50% of sales are made on account. The company collects 60% of sales made on account in the month of the sale, 25% in the month following the sale, and 10% in the second month following the sale. Faker Inc had total sales of $294,000 in January and $441,000 in February. Faker Inc. pays of half of its direct materials purchases in the month of the purchase and the remaining half in the month following the purchase. At the beginning of the quarter, Faker Inc. owed its creditors $27,342 for purchases of direct materials. Required: (A) Prepare a sales budget for the months of March, April, and May, and for the quarter-end. (B) Prepare a production budget for the months of March, April, and May, and for the quarter- end. [Note: you might want to compute the production needs for June, since you will need that information for subsection (C)] (C) Prepare the direct materials purchases budget for the months of March, April, and May, and for the quarter-end. (D) Prepare the direct labour budget for the months of March, April, and May, and for the quarter-end. (E) Prepare the overhead budget for the months of March, April, and May, and for the quarter- end. (F) Prepare the ending finished goods inventory budget for the quarter ending May 31. (G) Prepare a schedule showing cash collections (accounts receivable) from sales expected for the months of March, April, and May. (H) Prepare the cash payments on accounts payable schedule (case disbursements) for the months of March, April, and May