Melt Ltd. seeks your assistance in developing budget information for the months of September and October, 2020. On August 31, 2020 the company will have: Cash of $5,500; Accounts Receivable of $326,700; Direct material inventory of $15,129 (3,690 kilograms); Finished goods inventory of $52,000 (2,600 units); and Accounts Payable of $22,509. The budget for September and October are based on the following assumptions. Sales: Sales are on account and are collected 10% in the month of sale and the remainder in the following month. Production: The company wishes to produce enough units to meet monthly sales needs plus have an ending inventory equal to 20% of the next month's sales needs. Direct materials: Each unit of product requires 1.5 kilograms of direct material. The direct material costs $4.10 per kg. The company purchases enough direct material to meet current month production needs plus 10% of the next month's production needs. Seventy percent (70%) of direct material purchases are paid for in the month of purchase and the rest are paid for in the following month. Manufacturing overhead: Manufacturing overhead is budgeted at $40,000 per month. Included in the budgeted overhead is $3,000 for depreciation on factory equipment and $1,000 for property taxes. Property taxes are paid for once a year when invoiced by the city in November. All other cash-related manufacturing overhead is paid for as incurred. Sales - actual and projected: Dollars Units August $363.000 12,100 September $390,000 13,000 8 is paid for as incurred. Sales - actual and projected: Dollars Units August $363,000 12,100 September $390,000 13,000 October $375,000 12,500 November $345,000 11,500 REQUIRED: Prepare a production budget for the months of September and October. a. (2 marks) b. Prepare a direct material purchases budget for the month of September. (2.5 marks) Compute the budgeted cash payments for material purchases in September. mark) (1 d. Determine the budgeted Accounts Payable at September 30. mark) ( 1 Compute budgeted cash payments for manufacturing overhead in September. (1 mark) f. Compute budgeted cash collections from sales customers in September. (1.5 marks)