The Enterprise Company Manufactures two products, known as alpha and sigma. Alpha is produced in department 1 and sigma in department 2. The following information is available for 200X. Standard material and labour costs: () Material X 7.20 per unit Material Y 16.00 per unit Direct Labour 12.00 per hour Overhead is recovered on a direct labour hour basis. The standard material and labour usage for each product is as follows: Model alpha Model sigma Material X 10 units 8 units Material Y 5 units 9 units Direct Labour 10 hours 15 hours The balance sheet for the previous years was as follows: Fixed Assests: Land 170,000.00 Buildings and equipment 1,292,000.00 Less depreciation 255,000.00 Current assets: 1,037,000.00 1,207,000.00 Stocks, finished goods 99,076.00 Raw materials 189,200.00 Debtors 289,000.00 Cash 34,000.00 611,276.00 Less current liabilities Creditors 248,800.00 Net assets 362,476.00 Represented by shareholders interest 1,569,476.00 120 000 ordinary shares of 1 each 1,200,000.00 Reserves 369,476.00 Other relevant data is as follows for the year 200X: Finished product Model alpha Model sigma Forecast sales (units) 8500 1600 Selling price per unit 400 560 Ending inventory required (units) 1870 90 Beginning inventory (units) 170 85 Direct material Material X Material Y Beginning inventory (units) 8500 8000 Ending inventory required (units) 10200 1700 Department 1 Department 2 Budgeted overhead rates (per direct labour hour) Indirect materials 1.20 0.80 Indirect labour 1.20 1.20 Power (variable portion) 0.60 0.40 Maintenance (variable portion) 0.20 0.40 Budgeted fixed overheads 100,000.00 80,000.00 Depreciation 100,000.00 40,000.00 Supervision 40,000.00 2,000.00 Power (fixed portion) 45,600.00 3,196.00 Maintenance (fixed portion) Estimated non-manufacturing overheads: Stationary etc. (Administration) 4,000.00 Salaries Sales 74,000.00 Office 28,000.00 Commissions 60,000.00 Car expenses (sales) 22,000.00 Advertising 80,000.00 Miscellaneous (Office) 8,000.00 276,000.00 Budgeted cash flows are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Receipt from customers 100,000.00 120,000.00 112,000.00 985,000.00 Payments: Materials 400,000.00 480,000.00 440,000.00 547,984.00 Payments for wages 400,000.00 440,000.00 480,000.00 646,188.00 Other costs and expenses 120,000.00 100,000.00 72,016.00 13,642.00 You are required to prepare a master budget for the year 200X and the following budgets: 1. Sales budget 2. Production budget 3. Direct materials usage budget 4. Direct materials purchase budget 5. Direct labour budget 6. Factory overhead budget 7. Selling and administration budget 8. Cash budget Note that with the detailed subsidiary monthly bidgets the total budgeted sales of 4,296,000 is analysed by each sales territory for each month of the budget period. The detailed analysis assumes that sales are divided among the four sales territories as follows: Alpha Sigma North 3000 units 500 units South 2500 units 600 units East 1000 units 200 units West 2000 units 300 units 8500 units 1600 units Detailed monthly budgets for North, South, East and West are as follows North South East West Total Units Value Units Value Units Value Units Value Units Value Month 1 Alpha Sigma Total Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Months 01-Dec Alpha 3,000.00 1,200,000.00 2,500.00 1,000,000.00 1,000.00 400,000.00 2,000.00 800,000.00 8,600.00 3,400,000.00 Sigma 500.00 280,000.00 600.00 336,000.00 200.00 112,000.00 300.00 168,000.00 1,600.00 896,000.00 1,480,000.00 1,336,000.00 512,000.00 968,000.00 4,296,000.00