REQUIREMENT: Budgets and Budgetary Controls Question BulatRimba Company manufactures and sells plastic tires for automated cleaning machines. It is completing its financial plans for 2021 and needs assistance in the budgeting phase. The following information is available: BulatRimba Company Balance Sheet December 31, 2021 Assets Current assets: Cash $200,000 Account Receivables (net) 294,000 $494,000 Property, plant and equipment: Land $100,500 Buildings and equipment $350,000 Less accumulated equipment (118,000) 232,000 Total assets 332,500 $826,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $132,000 Stockholders' equity: Capital stock $400,000 Retained earnings 294.500 694,500 Total liabilities and stockholders' $826,500 equity Selling price for each wheel is $30 per unit. Budgeted sales unit for 2022 are: First quarter 15,000 Second quarter 16,000 Third quarter 18,000 BulatRimba will have no finished goods (wheel) and materials (plastic and rims) inventories at the beginning of the year. Management desires 5,000 kg of plastic at the end of the first quarter and 6,000 kg at the end of the second quarter. Each wheel takes 2kg of plastic. BulatRimba should have 2,000 rims at the end of the first quarter and 2,500 at the end of the second quarter. Finished inventory should total 1,000 wheels at the end of the first quarter and 1,500 at the end of the second quarter. Direct Materials Direct Labour Plastic 2kg @ $3 0.5 hour Rims 1 each @ $2 Variable factory overhead is applied at the rate of $3 per direct labour hour for each finished unit. Fixed factory overhead is $170,000 per quarter, including non-cash expenditures of $54,000 and is allocated on the total number of units completed direct labour averages $20 per hour. Required: For the first quarter of 2022, prepare the following: (a) Sales budget. (2 marks) (b) Production budget in units. (5 marks) (c) Direct materials usage and purchase budget (Plastic and Rims). (12 marks) (d) Direct labour budget. (2 marks)