Hao Chi is a new startup by fresh graduates from NSU who home deliver Momos across Dhaka. They make momos using locally produced flour, yeast, chicken and all the other fresh ingredients of finest quality. They have two momos: the standard one steamed chicken momo and the customized one named fried momo. The standard momos are prepared with antibiotic free chicken along with other ingredients and the customized momos add number of options that are customized as per customer demand and are deep-fried. For the third quarter of 2022, estimated sales in units for each product line are as follows: Month Standard (in plates) Customized (in plates) July 1,000 350 August 1,150 400 September 1,200 450 October 1,560 500 November 1,800 550 The CEO of the Hao Chi Momos provided you with the following additional information: Sales: The actual sales for May and the forecasted sales for June were Tk. 1,050,000 and Tk. 1,200,000 respectively for the standard units. The relevant numbers for the customized ones are Tk. 500,000 in May and Tk. 650,000 in June. Hao Chi Momo prices the standard momos at Tk. 400 per plate of 8 pcs and the customized momos Tk. 800 per plate of 8 pcs. Inventory Policy: The Company believes in customer satisfaction and therefore doesnt store any ready products. Rather theyre using lean production process where theyre producing on demand. Production requirements: The standard momos require 250 gm of chicken per plate and the customized ones require 350 gm of chicken. Chicken costs Tk. 380 per Kg. The cost of all other material is Tk. 120 per plate for standard units and Tk.200 for the customized units. The standard unit requires 0.50 direct labor hours per unit and the customized ones require 0.75 hours of labor time. Labor cost per hour is Tk. 200. Fixed Manufacturing Overhead is expected to be Tk. 60,000 per month, of which Tk. 22,000 for non-cash depreciation. Hao Chi applies manufacturing overhead to units based on direct labor hours and the variable manufacturing overhead rate is Tk. 25 per direct labor hours. Inventory policy-raw materials: Chicken is the main ingredient of momos. With regard to the chicken used in production, Hao Chi likes to keep safety stock of 50% of its need of chicken for the next months anticipated production. Hao Chi ended June, 2022 with 186 Kg of meat in stock. Payables Policy: Hao Chi signed an MOU with Bengal Meat where Bengal Meat agrees to supply all the meat needs on credit. According to the credit policy of Bengal meat for Hao Chi, half of the monthly purchase is due on the month of purchase and the rest of the due is settled in following month of purchase. Accounts payable for materials and other items were expected to be Tk. 105,000 on June, 2022. Costs of all other materials are purchased on a cash basis during the month of purchase according to the monthly production need. Collection policy: Hao Chi mainly delivers their products to corporate offices, hence offering credit term to attract corporates. For both the standard and customized units, 40 percent of any months sales are for cash. 10 percent of the credit sales are collected in the month of sale, 70 percent of credit sales are collected the following month and the rest of the dues are collected in the second month following the month of sales. Sales and Administration costs: Monthly selling expenses consist of the following: Salaries and wages: Tk. 75,000 Commissions: 6% of revenue Rent: Tk. 50,000 Utilities: 4% of revenue Cash and financing: Hao Chi expects to maintain a minimum cash balance of Tk. 300,000. Borrowing can make up any anticipated cash shortage at 10% annual interest. Bank will only lend (and accept repayments) in Tk. 1,000 increments. Cash balance to start the quarter is Tk. 350,000 Other information: Hao Chi will make a payment of Tk. 400,000 during July for equipment purchased on credit on April. The company also plans to pay dividends of Tk. 250,000 in August. Required: Prepare the following budgets for Hao Chi Momos for the months of the third quarter ending September, 2022. i. Ending finished goods inventory budget ii. Selling and administrative expense budget iii. The case budget iv. The budgeted income statement Prepare the following schedules: i. Expected cash collections