Question 4(Budgeting) (25 Marks} The following information is available for Moon Chung Hsu company: Expected sales ( Units) June July August Selling price per unit Accounts receivable balance June 1 Accounts payable balance June 1 Desired finished goods inventory August 31 (units) Beginning finished goods inventory June 1 (units) Direct material neededs per unit Desired direct material inventory, August 31 Begnning direct material inventory, June 1 Total direct labour time per finished unit Direct material cost per pound Direct labour cost per unit 840 980 1,400 $ 15 $ 6,300 $ 2,350 250 270 11 lbs 2,800 lbs 2.700 lbs 3 hours $ 0.60 $ 8 Additional information: 1) Seventy-five percent (75%) of a month's sales is collected by month's end. The remaining 25% is collected in the following month. 2) Sixty percent (60%) of a month's purchases is paid by the month's end. The remaining 40% is paid in the following month. 3) The desired ending finished goods inventory every month is 25% of the next month's sales. 4) The desired ending direct material inventory every month is 20% of the next month's production needs Required: a) What are the two general purposes of budgeting? b) Prepare the sales budget for June, July and August (in dollars) c) Prepare cash collection budget for June, July and August (in dollars) d) Prepare the production budget for lune, July and August (In units) e) Prepare the direct materials budget for June, July and August (in dollars) f) Prepare the direct labour budget for June, July and August (in dollars)