Task #1 Ride-Out sales are highest in the spring and summer months, when private consumer purchases peak. The most profitable months are always March to May, when outdoor adventure stores are preparing for the summer season. The first nine months of this year have been difficult. Due to poor weather, monthly sales have dipped 4% over the prior three-year average, and this decrease is reflected in the estimate for the remaining three months. Fortunately, there is no indication that the bad weather will repeat into the upcoming year.You have obtained the following sales data for the past nine months, as well as three months of forecasted data: Month Units sold Jan uary ?4 February 90 March 210 A ri| 240 May 255 J une 205 J uly 180 August 160 September 90 October (forecast) 85 November (forecast) 70 December (forecast) 65 Power-Ride had a one-time special order in April for 15 Ride-Outs that is not expected to occur this upcoming year. One of Power-Ride's retailers, Outtters Inc., recently closed. It accounted for 5% of regular sales for January to March, and 8% of regular sales for the remainder of the year. The Ride-Outs currently sell for $1,400 per unit, and the company is planning to increase the selling price by 5% for the coming year. Market research shows that two-wheeled personal transportation vehicles are gaining popularity with those who live in hilly or windy areas and those with reduced tness levels. As a result, experts are predicting that sales growth in this market will be at least 6% in the coming year. Power-Ride requires inventories of nished goods on hand at the end of each month to be equal to 50% of the following month's budgeted sales. Power-Ride expects to have 20 units on hand on this December 31 (at year end). Prepare a monthly sales budget in both units and dollars for the next fiscal year. In addition, prepare a budget in units to forecast required monthly production to meet expected sales. Task #2 You have completed the budgets for the production inputs for next year, summarized below. January February March April May June Direct materials $30,624 $50,945 $75,547 $76,000 $63,230 $50,584 Direct labour $30,019 $49,940 $74,055 $74,499 $61,981 $49,585 Manufacturing overhead $12,615 $20,986 $31,120 $31,307 $26,046 $20,837 July August September October November December Direct materials $41,678 $32,772 $29,923 $27,608 $23,867 $22,528 Direct labour $40,855 $32,126 $29,332 $27,062 $23,395 $22,083 Manufacturing overhead $17,169 $13,500 $12,326 $11,372 $ 9,832 $ 9,280 The cost per unit of the opening inventory in January is expected to be $705 per unit. Monthly inventory is costed at the average annual manufacturing costs for the year based on the required production level, and any over or under amounts are included in the cost of goods sold for the month. You were also provided with the following to use for the selling and administrative budget. Prior-year monthly expense information and assumptions: Shipping costs $45 per unit (no expected change) Wages and salaries $20,000 expected to increase by 3% ination oniy at the beginning of the year and then remain constant Depreciation $8,200 expected to stay the same Utilities $7,100 expected to increase by 3% in February and then remain constant Insurance $4,100 expected to increase by 2% on renewai in Aprii and then remain constant Miscellaneous $2,900 expected to stay the same 3) Prepare the monthly cost of goods sold budget for the next scal year. b) Prepare the monthly selling and administrative expenses budget for next fiscal year. c) Prepare the annual budgeted net income statement for next scal year, ignoring income taxes based upon the information provided