Part 1: Sales (5 marks) NFT is preparing budgets for the Quarter Ending Sept 30th, 2022. Budgted Sales for the next 6 months are: Month Units July 32000 August 42000 September 32000 October 21000 November 23000 December 36000 Each Unit sells for $100.00 100 Sales Budget Budgeted Sales In Units Selling Price Per Unit Total Budgeted Sales July Sales Budget August September Quarter 32,000 42,000 32,000 100 100 100 106,000 100 3,200,000 4,200,000 3,200,000 106,000,000 All of NFT's sales are on Account NFT's collection Pattern is: Part 2: Cash Collection (5 marks) % Type 60 Collected in the month of sale 30 Collected in the following month 10 Uncollectible The June 30th accounts receivable balance of $132,000 will be collected in full. Cash Collections. July August September Quarter Accounts Receivable July Sales 132,000 1,920,000 960,000 132,000 28,800,000 Aug Sales 2,520,000 12,600,000 3,780,000 Sep Sales 1,920,000 1,920,000 Total Cash Collections 2,052,000 340,000 3,180,000 87,120,000 Part 3: Production (5 marks) NFT wants an ending inventory equal to 15% of the following month's budgeted sales in units. On June 30th, 21,000 units were on hand. The September 30th desired ending inventory is 20,000. units Production Budget July August September Quarter Budgeted Sales Desired Ending Inventory 32,000 6,300 42,000 32,000 106,000 4,800 20,000 31,100 Total Needs 38,300 46,800 $2,000 137,100 Less Beginning Inventory 21,000 6,300 4,800 32,100 Required Production 17,300 40,500 47,200 105,000 NFT uses 10 pounds of material per unit. Part 4: Materials Purchased (5 marks) NFT has decided it wants 15% materal of the following month's production. On June 30th it had 30,000 pounds of material on had. The material costs $2.00 per pound. NFT September 30th desired ending material is 8,000 pounds Production Units Materials per unit (pounds) Production Needs Add: Desired Ending Inventory Total Needed Less: Beginning Inventory Materials to be Purchased Direct Materials Budget July August September Quarter