= FILE SAVE SAVE SAVE PRINT SHARE OPEN OPEN PDF AS PDF IN IN ABC Itd is into production of beverages, It started production on 1 January. Sales are planned to start in February and to be as follows for the rest of the year; Sales Units February 200 March 250 April 300 May 350 June 400 July 450 August 400 September 400 October 350 November 300 December 250 Raw material purchases will be such that there will be sufficient raw materials stock available at the end of each month precisely to meet the following month's planned production. This planned policy will operate from the end of January. Purchases of raw materials will be on two months' credit. The cost of raw material is $40 per unit of finished product. The direct labour cost, which is variable with the level of production, is planned to be $20 perunit of finished production. Production overheads are planned to be $20,000 each month, including $3,000 for depreciation. Non-production overheads are planned to be $11,000 per month of which $1,000 will be depreciation. The selling price per unit will be $100. All sales will be made on credit. The business plans to offer a cash discount of 2%% of the amount owed to those customers who pay by the end of the month of sale. Customers for half of all units sold are expected to qualify for the discount. For the remaining half of the units sold, customers for 95%% are expected to pay during the month following the sale. The remainder is expected to be bad debts. It is planned that sufficient finished goods stock for each month's sales should be available at the end of the previous month. * Various fixed assets costing $250,000 will be bought and paid for during January. . Except where specified, assume that all payments take place in the same month as the cost is incurred. . The business will raise $300,000 in cash from a share issue in January. Required: Draw up a cash budget for the six months from 1 January to 30 June, with a column for each month. The budget should, among other things, show each end-of-month cash balance. Note: Show and explain all key workings - these will earn you marks, and you will lose marks if these are not provided. ABC Itd is into..erages.docx PAGE 1 OF 2 V O