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: Total sales revenue Number of jars sold 1" quarter (2021) $182,000 150,000 2 quarter(2021) $210,000 30 quarter(2021) 5251,000 213,500 4 quarter(2021) $195,000 164,500 180.500 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 Stuffed animals to be produced January 5,700 February March 4,300 April 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 PARTC 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. 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