Part A: Prepare Operating Budgets as follows:

1) Monthly Sales Budget for the quarter ending June

2) Monthly Production Budget for the quarter ending June

3) Monthly Direct Materials Budget for the quarter ending June

4) Monthly Direct Labor Budget for the quarter ending June

5) Monthly Manufacturing Overhead Budget for the quarter ending June

6) Monthly Selling & Administrative Expenses Budget for the quarter ending June

7) Ending Inventory Budget for the month of June

8) Cost of goods Sold Budget for the quarter

9) Budgeted Income Statement for the quarter

10) Monthly Cash budget for the quarter.

ABC Pty Ltd Sales April May June July Actual Sales Volume 3-moths to June Units 67,500 54,000 60,750 81,000 162,200 Unit selling price $6,200 The desired finished goods inventory for each month is 60% of the next month's sales The full absorption cost of the opening finished goods inventory is $4,730 per unit The variable manufacturing cost of the opening finished goods inventory is $1,930 per unit Finished goods inventory on April 1 is 43,200 units Materials required to be on hand at the beginning of the month to produce 20% of that month's estimated sales Direct Material used per unit Actual Material Used - 3 months to June Rotor Blades Rotor Blades Quantity 5 750,800 729,100 Cost per unit $81 $108 Actual cost of material Used - 3 months to June $48,651,840 $80,883,680 Budgeted Direct Labour time per unit 8 hours Actual Labour Used - 3 months to June 1,662,590 Direct Labour cost per hour $50 Actual cost of labour Used - 3 months to June $70,660,100 Budgeted Manufacturing Overheads Recent statistical data for Maintenance Costs Fixed Cost Variable Cost component component per month per DL hour Labour Hours Total Maintenance Costs 1,302,800 $79,920,000 Indirect labour So $56.70 1,485,000 $86,805,000 Power SO $5.40 1,363,500 $82,215,000 Maintenance ? ? ?? 1,242,000 $77,625,000 Supervision $37,800,000 $0 Depreciation $3,375,000 SO Rates & Utilities $2,789,100 so Other $13,500,000 $40.50April May June Variable Selling Expenses $62,775,000 $50,220,000 $56,497,500 Fixed Selling & Admin Expenses $24,300,000 $19,440,000 $21,870,000 Total Selling & Admin Expenses $87,075,000 $69,660,000 $78,367,500 Cash on hand at opening $3,375,000 Annual interest rate on borrowing 6% Cash Sales SO Received in month of sale 80% Received in month after sale 18% Balance of accounts receivables at the start of the month $82,863,000 Dividends paid in June $1,194,750 Land purchased in May $185,100,000