Question: Asahi Glass Inc. produces and distributes different kinds of glasses. The information below about Asahi's operations has been assembled to assist budget preparation. The company is preparing its master budget for the first quarter of 2021. The budget will detail each month's activity and the activity for the quarter in total. The master budget will be based on the following information: a. Selling price was $43 per unit in 2019 and will not change during 2020. Actual and Estimated Sales , are as follows Estimated 2020 January 27,000 units February 29,000 units March: 25,000 units April: 25,000 units May 20,000 units b. The company produces enough units each month to meet that month's sales plus a desired inventory level equal to 20% of next month's estimated sales. Finished goods inventory at the end % . of 2019 consisted of 2,000 units c. The company purchases enough raw materials each month for the current month's production requirement and 20% of next month's production requirement. Each unit of product requires 4 Mlograms of raw material at $0.50 per kilogram. There were 25.000 kilograms of raw materials in inventory at the end of 2019. Asahi pays 40% of the raw material purchases in the month of purchase and the remaining 50% in the following month d Each unit of finished product requires 1.6 labor-hours. The average wage rate is $20 per hour e Variable manufacturing overhead is 40% of the direct labor cost 1. Seles are 30% in cash and 70% in credit. Credit sales are collected in the month following sale . & Fixed manufacturing overhead costs (per month) are as follows - Factory Manager's Salary $ 6,500 Factory Insurance 5 3.400 Factory Rent $45,000 Depreciation of factory equipment $ 2,000 h. Totalfixed 5 & A expenses are as follows Total A Advertising 5 3.000 Depreciation $ 8.000 Insurance $ 750 Salaries $ 5,000 Other $ 2.950 Variable selling and administrative expenses consist of $3.5/unit for shipping and 12% of sales for commissions The balance sheet as of December 31, 2019 is as follows- Assets Cash $ 70,000 Accounts Receivable 512.000 Inventary: Raw Materials $ 12,500 Inventory: Finished Goods 82,000 94,500 Plant and Equipment $1,100,000 Less: Accumulated Depreciation (180,000) 920,000 Total Assets 51,596,500 Liabilities and Equity Accounts Payable $ 27.500 Long-Term Notes payable 319,000 Common Shares 635,000 Retained Earnings 115,000 Total Liabilities and Shareholder's Equity $1,596 500 Additional information is as follows - - All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the month. Ignore interest rates and income tax. A minimum cash balance of 560,000 is required at the end of each month Required: 1. Prepare the following budgets for each of the first three months of 2020,21 marks! Sales budget b. Production budget c Raw materials purchases budget. d. Direct labour and manufacturing overhead budget e. Ending finished goods inventory budget Selling and administrative budget. . Cash budget 2. Prepare a budgeted income statement for the first three months of 2020 and a budgeted balance sheet as of March 31, 2020.19 marks