Part A Epic Foods produces specialty soup sold in mason jars. The projected sales in dollars and jars for each quarter of the upcoming year are as follows: 1st quarter (2021) 2nd quarter(2021) 3rd quarter(2021) 4th quarter(2021) Total sales revenue $182,000 $210,000 $251,000 $195,000 Number of jars solde 150,000 180,500 213,500 164,500e Epic anticipates selling 223,000 jars with total sales revenue of $265,000 in the first quarter of the year (2022) following the year given in the table above. Epic has a policy that the ending inventory of jars must be 30% of the following quarter's sales. Prepare a production budget for the year that shows the number of jars to be produced each quarter and the year in total. PART B Gable industries manufactures a popular interactive stuffed animal for children that requires two computer chips inside each toy. Gable pays $3 for each computer chip. To help guard against stockouts of the computer chip Gable has a policy that states that the ending inventory of computer chips should be at least 20% of the following month's production needs. The production schedule for the first four months of the year is as follows: Month January Februarye Marche Aprile Stuffed animals to be producede 5,700 4,600 4,300 4,900 Required: Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget PART C Roan's manufacturing is preparing its cash budget for the first two months of the upcoming year. The following information concerns the company's upcoming cash receipts and disbursements. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after the sale. Actual sales in December were $51,000. January sales are budgeted to be $60,000; February sales are budgeted to be $69,000 Actual purchases of direct materials in December were $25,500. Roan's purchases of direct materials in January are budgeted to be $23,500 and $28,000 in February. All purchases are paid 30% in the month of purchase and 70% the following month.. Salaries and sales commissions are also paid 50% in the month earned (when the sales are made) and 50% the following month. Actual salaries in December were $8,000. Budgeted salaries for January are $9,000 and February budgeted salaries are $10,500. Sales commissions each month are 8% of that month's sales. Rent expense is $3,300 per month . Depreciation is $2,800 per month The cash balance at the end of the prior year was $18,000 The company is required to maintain a cash balance of $10,000. If necessary, it can borrow in increments of $1,000 at 0% interest. So far, the company has not had to borrow. Required: 1. Prepare a schedule of a) cash collections b) budgeted cash payments for purchases of direct materials c) budgeted cash payments for operating expenses 2. Cash budget for January and February