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Question 1 (10 marks) Pottery Manufacturing Limited has projected sales and production in units fo October November December Sales 50,00 40,00 60,000 Production 60,00 50.00

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Question 1 (10 marks) Pottery Manufacturing Limited has projected sales and production in units fo October November December Sales 50,00 40,00 60,000 Production 60,00 50.00 50,000 Cash-related production costs are budgeted at $5 per unit produced. Of thes the month in which they are incurred and the balance in the following month. expenses will amount to $100,000 per month, paid in the month incurred. Th September 30 totals $190,000, which will be paid in October. All units are sold on account (as credit sales) for $14 each. There are no cas sales are budgeted at 60% in the month of sale, 30% in the month following remaining 10% in the second month following the month of sale. Accounts re $500,000 ($90,000 from August's sales and the remainder from September) Required: a. Prepare a schedule for each month showing budgeted cash disburse

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