Festive Deco pty ltd produces and delivers premium artificial Christmas tree across Australia and New Zealand. Unit selling price of each Christmas tree is $$12.$ Requirements of direct material and direct labour to produce one Christmas tree are as follows:

Direct material: $1\mathrm{.}2$kg of plastic at $$3\mathrm{.}5$ per kg$.$

Direct labour: $1\mathrm{.}2$ hours at $22\mathrm{.}50$ per hour.

Festive Deco plans the inventory levels from June to November as follows:

Raw material:

June beginning balance: $576$

June Ending balance: $648$

July beginning balance:$648$

July ending balance: $816$

August beginning balance:$816$

August ending balance: $936$

September beginning balance:$936$

September ending balance:$948$

October beginning balance: $948$

October ending balance: $968$

November beginning balance: $968$

November ending balance: $1004$

Finished goods:

June beginning balance: $160$

June Ending balance: $200$

July beginning balance:$200$

July ending balance: $240$

August beginning balance:$240$

August ending balance: $320$

September beginning balance:$320$

September ending balance:$300$

October beginning balance: $300$

October ending balance: $340$

November beginning balance: $340$

November ending balance: $300$

Expected unit sales $($ number of Christmas tree$)$ for the following months:

June: $880$

July :$800$

August:$960$

September:$1,280$

October: $1,200$

November:$1,360$

The company usually adopts a single application rate of $$0\mathrm{.}85$ per unit produced for variable manufacturing overhead. According to the company's production manager, the annual fixed manufacturing overhead will be approximately $$15,000.$ Expected monthly expenses of selling and administrative are estimated $$2,080$ per month plus $$1\mathrm{.}20$ per unit sold.

Required:

Part $1.$ Prepare the following for the company for the third quarter $($ July, August and September$).$ Include each month as well as the third quarter total for each budget.

a$.$ Sales budget

b$.$ Production budget

c$.$ Direct materials purchases budget in units and dollar amount.

d$.$ Direct labour budget in hours and dollar amount.

e$.$ Manufacturing overhead budget.

Part $2.$

Suppose that the company had $$28,000$ cash at Bank at the beginning of the third quarter. Cash sales average $60$ percent of total sales $($ refer to your answer to part a$)$ credit sales are collected $50$ per cent in the month of sale and $50$ per cent in the month following sale. Prepare budgeted cash receipts. Include each month $($ July to September$)$ as well as quarter $2$ totals.