QUESTION ONE (10 marks) Bags To Go manufactures witcases with wheels which it sells to specialty retailers. One of the products, the Durawheel, is a medium sized suitcase made of plastic with metal wheels. The company is in the process of preparing its budget for the month ended December 31, 2019. The following information was gathered to assist in the pr i ce of the Sales Projection. December sales 1.000 suitcases J y sales 400 suitcases February sales 500 suces The suitcases are expected to sell for $300 per mit. On November 30, 2019 Accounts Receivable equaled 596,000. The company expects to collect 60 percent of sales in the mouth of sale and the remainder in the following mouth Production: The company would like to produce enough Dwwwheels to meet current mouth sales requirements plus have sufficient inventory on hand, at the end of each month to meet 10 percent of next month's projected sales. On November 30, 2019 the company had 100 Durawheels in its finished goods inventory Direer Material: Plastic: 2 kilograms at $10.00 kilogram are required to make one Durawheel Metal 5 kilograma 8.00 kilogramare required to make coe Dawbeel The company would like to purchase ough direct material to meet creat month production needs ples have 5 percent of next month's production needs in very the end of the mouth on November 30, 2013 there were 94 kilograms of plastic inventory and 25 kilograms of metal in inventory Om November 30, 2013 Accounts Payable equaled $11.760 (includes both plastic and metal. The compwry expects to pay for 30 percent of its direct material purchase in the mouth of purchase and the remainder in the following month REQUTRED a. Prepare a production budget for the mouth of December and Janary. b. Prepare a direct material p hases budget for plastic for the mouth of December c. Prepare a direct material purchases budget for metal for the mouth of December