I need help with Question 12 (page 3).

Karantika Ltd 6. Variable manufacturing overhead is $25 per direct manufacturing labour-hour. There is Prepare a monthly master budget for Karantika Lid's for the first semester of 2020. The Karantika Lid operates at capacity and makes glass-topped coffee tables. At the end of 2019, also $210,000 in fixed manufacturing overhead costs per month. Fixed costs include following component budgets must be included: Karantika Lid's management accountant gathered the following data to prepare budgets for the $40,000 depreciation of factory equipment. The fixed manufacturing overhead rate is 1. Sales revenue budget first six months 2020: based on the number of units produced budgeted every six months, at the beginning of 2. Production budget (in units) 1. Units sales per quarter and the selling price per unit are estimated as follows: each semester, calculated dividing the budgeted fixed overhead costs by the budgeted number of units produced for the semester. Variable and fixed costs are paid in the month incurred. 3. Direct materials usage and purchases budget for each direct materials and total direct Unit sales Price per unit January materials (in units and dollars) 2,70 $400 February 2,600 $400 7. Sales commissions are paid monthly at a rate of 10% of the month's sales revenue. There is $160,000 in fixed non-manufacturing costs (administrative expenses) budgeted per 4. Direct manufacturing labour budget March 2,800 $550 2.600 $550 month, including $20,000 depreciation costs of office equipment. Variable and fixed 5. Manufacturing overhead budget April 6. Manufacturing overhead rate for the semester May 2.650 $500 nonmanufacturing costs are paid in the month incurred June 2,60 $500 8. Karantika Ltd has estimated the following payments in the first semester of 2020: January: 7. Ending finished goods inventory budget (unit cost and total cost) in June 2020. July 3,000 $500 Loan for $40,000 plus interest payable at 31 December 2019 for $2,000 were paid on 2 8. Selling and administrative expenses budget August 3,000 $550 January 2020. End of January: Dividends $100,000 9. Cash budget Sales in November 2019 were 2,500 units and in December 2,400 units at a selling price Beginning of May: Purchase of land $200,000 of $450. Beginning of June: Purchase of equipment for $300,000. Estimated useful life 5 years with 10. Cost of goods sold on 30 June 2020 20% of sales are cash sales, and 80% are credit sales. From experience, Karantika Lid zero residual value. 11. Budgeted income statement for the first semester of 2020 collected 40% of credit sales within the month of sale, 30% in the following month and 9. Karantika Lid maintains an 18% open line of credit for $100,000. Interests are paid at the 12. Budgeted balance sheet as of 30 June 2020 (including separately the two direct materials 25% in two months after the month of sale. 5% of credit sales are uncollectible. The bad end of each month. Karantika Lid maintains a minimum cash balance of $20,000. The inventory) debt is calculated at the end of six months. company borrows on the first day of the month and repays loans on the last day of the Note. There is no beginning and ending balance of WIP in each month. 2. The beginning inventories (BI) on 1 January 2020 and the desired ending inventories (EI) month, both in multiples of $1,000. The income tax is 30%. at the end of each month are as follows: 10. Karantika Lid's balance sheet at 31 December 2019 is as follows: BI (1/1/19) El (end of each month) Tables:500 (at $210/unit) 20% of following month estimated sales ASSETS LIABILITIES end Wood: 1,400 bm 25% bm. needed for next month's Cash 32,000 Accounts payable ** 64,000 budgeted production (units) Accounts receivable * 673,200 Interest payable 2,000 Glass 500 sheets 20% sheets needed for next month's budgeted production (units) Inventory: Wood 22,400 Loan payable 40,000 Inventory: Glass 11,000 SHAREHOLDER'S EQUITY 3. Materials and labour requirements Direct materials: Inventory: Finished goods 105,000 Share capital 801,600 Wood: 2 board meters (bj) per table Glass: 1 sheet per table Plant and equipment, net 450,000 Retained earnings 386,000 Direct manufacturing labour: 4 hours per table Total assets 1,293,600 Total Liabilities and 1,293,600 1. Costs of direct materials and labour: Shareholder's equity Wood: $16 per bm. *At the beginning of the year, there is no allowance of doubtful debt ** Glass: $22 per sheet Direct labour: $25 per labour-hour Account payable is from the direct material purchase 5. Direct materials are purchased in the month of production and are paid 60% in the month of purchase and 40% in the following month. Wages and salaries are paid monthly Required: 2