study$($ABC$)$ Inc. preparing their annual budget for $2023$ financial period. The following data were available concerning this period:$-$ The monthly sales in units:JanFebMarAprMayJunJulAugSepOctNovDec$120001250010000180002000025000250002500020000160001200010000-$ Sales of Jan and Feb $2024$ are expected to be $13000$ and $15000$ units respectively.$-$ Sales price for the first four months is $$20$ and is expected to increase by $25\%$ after that.$-$ The company has a policy to keep $20\%$ of sales of the next month plus $1000$ units as an inventory policy.$-$ Each unit required three raw materials to be produced as follow: The raw materialDM $($A$)$DM $($B$)$DM $$Quantity$/$unit$5$ kg$3$ kg$2$ kgPrice$/$kg$$0\mathrm{.}5$$$0\mathrm{.}750\mathrm{.}40-$ The company has a policy to keep $10\%$ of next month production as ending inventory for $($A$)$ and $($B$)$ and $25\%$ of DM $($C$).-$ The company uses normal costing system in its plant. The plant has a machining department and an assembly department. The company allocates overhead costs based on two costs pools $($the machining department OH allocated to production based on actual$-$machine hours, and the assembly department OH allocated to production based on actual direct labor hours$).$ The budgeted costs and hours for $2013$ were as follow: DepartmentMachiningAssemblyMachine hours$616,500112,000$DLH$305,250411,000$Rate$/$DLH$$1\mathrm{.}25/$DLH$$1\mathrm{.}75/$DLHOH costs$$246,600$$$369,900-$ Total budgeted marketing, distribution and customer service costs for the year are $$898,500.$ Of this amount, $$411,000$ are considered fixed $($and include depreciation of $$135,000).$ The remainder varies with sales.$-$ The budgeted general and administrative costs includes the following monthly costs $($all are fixed$)$: Salaries$$15,000$Rent$$5,000$Depreciations$$12,000$Insurance$$2,000$Others$$4,000-$ The budgeted capitalized expenditures and revenues are as follow:$1.$ Paying to bonds payable an amount of $$250,000$ plus $$25,000$ as bonds interest during March $2013\mathrm{.}2.$ Purchasing equipment at a budgeted amount of $$500,000,$ and sell the old equipment at a budgeted amount of $$125,000.$ The purchase is expected to take place in June and selling the old equipment is expected to be in August$\mathrm{.}3.$ There are rent revenues at an amount of $$30,000$ semi$-$annually, collected in July and January of each year.$-$ Cash from sales revenues are collected as follow: $40\%$ in the month of sales, $30\%$ in the month next of the month of sale, $22\%$ in the month after, and the last $8\%$ are uncollectible.$-$ Payment to DM $($A$)$ and $($B$)$ are as follow: $70\%$ in the month of sale and $30\%$ in the month next to the month of sale. Payment to DM $($C$)$ is in the same month of sale $($i$.$e$.,$ all DM $($C$)$ purchases are in cash$).-$ Sales of Nov and Dec $2022$ were $12,000$ units and $11,000$ units and the sales price was $$19$ per unit.$-$ Accounts payable in $31$st of Dec $2022$ was $$55,000.-$ All other expenses are paid as incurred.$-$ Cash beginning balance was $$40,000.-$ In case of deficit, the company will borrow the shortage from the bank at $12\%$ annual interest rate.$-$ In case of surplus, the company will invest the extra cash in short term investment at a $6\%$ annual return.$-$ The company will not borrow unless they sold their investment.