The facts and figures relating to Al Dhafra Corporation areas follows. Al Dhafra Corporation produces plastic garden sprinklers. The company is preparing its budget for 2015. The first step is to plan for the first quarter of that coming year. Al Dhafra has collected the following information from the managers 1. Sales: Sales for November 2014 Sales for December 2014 Expected sales for January 2015 Expected sales for February 2015 Expected sales for March 2015 Expected sales for April 2015 Expected sales for May 2015 Selling price per unit 112.500 units 102,100 units 113,000 units 112.500 units 116,000 units 125,000 units 137.500 units SI2 Al Dhafra likes to keep 10% of next month's unit sales in ending inventory. All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2014, totaled $183,780. 2. Direct Materials 2 pounds of direct materials are needed to produce one unit. Al Dhafra likes to keep 5% of the materials needed for the next month's production in its ending inventory. Raw materials on hand on December 31, 2014, totaled 11,295 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2014, totaled $120.595 3. Direct Labor Labor requires 12 minutes per unit for completion and is paidat a rate of S8 per hour. 4. Manufacturing Overhead Indirect materials $0.30 per labor hour Indirect labor $0.50 per lahor hour Utilities $0.45 per labor hour Maintenance 50.25 per labor hour Factory supervisor's salary S42,000 per month Factory Depreciation S16,800 per month Property taxes $ 2,675 per month Insurance $ 1.200 per month Repairs $ 1,300 per month 5. Selling and Administrative expenses Salaries $72,000 per month Advertising $15,000 per month Insurance $1,400 per month Office Depreciation $ 2.500 per month Other fixed costs $ 3.000 per month Panda a rate of S8 per hour. 4. Manufacturing Overhead Indirect materials $0.30 per labor hour Indirect labor $0.50 per labor hour Utilities $0.45 per labor hour Maintenance $0.25 per labor hour Factory supervisor's salary S42,000 per month Factory Depreciation $16,800 per month Property taxes $ 2,675 per month Insurance $ 1,200 per month Repairs $ 1,300 per month 5. Selling and Administrative expenses Salaries $72,000 per month Advertising SI5,000 per month Insurance $1,400 per month Office Depreciation $ 2,500 per month Other fixed costs $3,000 per month Other Information The cash balance on December 31, 2014, totaled S100.500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2015 Dividends are paid each month @ $2.50 per share for 5,000 shares The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of S1,000, and the interest rate is 8%. Al Dhafra borrows on the first day of the month and repays on the last day of the month if possible. A $500,000 equipment purchase is planned for February 2015 Instructions: 1. This group project requires the use of EXCEL spreadsheets to prepare various budgets for a manufacturing company 2. The class is asked to form groups of not more than 4 students and allocate the task among them equitably 3. All the members of the group must contribute to the effort and share the overall task, equitably 4. The group should PREPARE the following documents for the first quarter (January February & March) of 2016 by using a MS EXCEL spreadsheet: (a) Sales Budget (b) Production Budget (c) Direct Materials Purchase Budget (d) Direct Labor Budget (c) Manufacturing Overhead Budget (1) Selling and Administration Budget (g) Schedule of expected cash collections from customers (h) Schedule for expected cash payments for materials purchases (i) A Cash Budget