PART B Budgeting for Moon Star Enterprises Moon Star Enterprises has ascertained the following about its sales and inventory to be maintained. The company is preparing a budget for the fourth quarter i... October, November, and December Sales (in units) for the five months starting from October have been estimated as below: October November December January 2022 February 2022 40,000 units 100.000 units 60,000 units 50,000 units 30,000 units The selling is expected to be prevailing at S 10 per unit and it will be the same throughout this period The company feels that production must be adequute to meet out the budgeted sales and provide sufficient for ending inventory. Moon Star Enterprises wants ending inventory to be equal to 20% of the following month's budgeted sales in units. On September 30.8.000 units were on hand. All sales are on account. Moon Star's collection pattern is as follows: 70% collected in the month of sale, 25% collected in the month following sale, 5% is uncollectible The accounts receivable balance of S 50,000 will be collected in full in October Required As a Management Accountant of Moon Star Enterprises, you are asked to (1) Prepare Sales, Production and Cash Collection budget for the fourth quarter (Oct, Nov, and Dec) (30 marks) (ii) Describe the benefits that Moon Star Enterprises will get out of preparing budgets for all business functions. (10 marks) (30 + 10 = 40 marks)