The data below pertains to the third quarter of Ontario Company which manufactures toys. Below is the estimated sales (in units): July August September October November December 35,000 65,000 85,000 45,000 15,000 25,000 a. The selling price of the toys is $10 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: Month of sale Month following sale Uncollectible 25% 70% 5% c. Sales for June totaled $400,000. d. The company maintains finished goods inventories equal to 20% of the following month's sales. This requirement will be met at the end of June. e. Each toy requires 3 pounds of raw materials. f. The company requires that the ending inventory of raw materials be equal to 20% of the following month's production needs. g. The raw material costs $1.50 per pound. h. 40% of a month's purchases of raw materials is paid for in the month of purchase; the remainder is paid for in the following month. i. The accounts payable on June 30 will be $80,000. Required: Prepare: 1. Prepare a sales budget, by month and in total, for the Third quarter. (3 marks) 2. Prepare a schedule of expected cash collections, by month and in total, for the Third quarter. (15 marks) 3. Prepare a production budget for each of the months July, August, September and October. (10 marks) 4. Prepare a direct materials budget, by month and in total, for the Third quarter. (12 marks) 5. Prepare a schedule of expected cash disbursements, by month and in total, for the Third quarter. (15 marks) Total of Pat I (55 marks)