Northwest Company is a trading company which sells components for computers. The financial controller is preparing the budget for three months ended 30 June 2021.

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Salaries and Overheads including Month Sales Purchases wages depreciation Units S $ $ Fehmary 4.300 13.000 10,000 9,000 March 5,000 145,000 10,000 10,000 April 3,300 14,000 11,000 10,250 May 3.500 12.000 12,000 10,250 June 3.200 12,000 13,000 10,250 The selling price in Fehmary 2021 is $6 per unit and this is to be increased to $3 per unit in April 2021. 50% of sales are for cash and 50% on credit to be paid two months later. Purchases are to he paid for two months after purchase. Salaries and wages are to be paid 25% in the month incurred and 25% in the following month. Dryerheads are to he paid in the month after they are incurred. Cash dividends of $12,000 are to he paid in the 1'1'101'l'1 of June 2021. Two machines totaling $30,000 are to he purchased on 1 May 2021. The cost of machines is to he paid equally in three monthly instalments commencing on 31 May 2021. It is estimated that the amount of machinery and bank balance as at 1 April 2021 would be $240,000 and $5,000 respectively. Machinery are depreciated on a monthly laws at 10% per annum using the straight-line method