The H&BClothing Company manufactures luxury brand silk jackets. Currently the company makes classic style jackets in an innovative one-size-fits-all design. The production process involves drawing, cutting, and assembling the pattern pieces. Direct materials include two types of fabric silk, and viscose for lining. Other materials, such as shoulder pads, stitching threads, buttons, labels, and packaging, are treated as indirect materials. H&BClothing is preparing budgets for the third quarter ending September 30, 2023. For each of the requirements (1-8) below, prepare monthly budgets for July, August, and September, along with a total budget for the quarter. 1. The previous years sales (2022) for the corresponding period were: July August September October November 580 600 650 850 1,000 jackets jackets jackets jackets jackets The company expects the above volume of jacket sales to increase by 15% for the period July 2023 November 2023. The budgeted selling price for 2023 is $735.00 per jacket. The company expects 10% of its sales to be cash (COD) sales. The remaining 90% of sales will be made on credit. Prepare a Sales Budget for H&BClothing. 2. The company desires to have finished goods inventory on hand at the end of each month equal to 12 percent of the following month's budgeted unit sales. Use the @ROUND function to round to the nearest whole number the number of jackets desired in ending inventory. On June 30, 2023, the company expects to have 55 jackets on hand. Use the @ROUND function to round to the nearest whole number the number of jacket units to produce. Prepare a Production budget. (NOTE: an estimate of sales in October is required in order to complete the production budget for September). 3. The jackets require two direct materials: silk fabric and viscose fabric for lining. Silk Silk fabric is purchased by the yard. 1.75 yards of silk fabric are required for each jacket produced. Management desires to have materials on hand at the end of each month equal to 15 percent of the following month's jacket production needs. Use the @ROUND function to round to the nearest whole number the number of yards 2 of silk desired in ending inventory. The beginning inventory of silk fabric, July 2023, is expected to be 220 yards. Silk fabric is expected to cost $25.00 per yard. Use the @ROUND function to round to the nearest whole number the number of yards of silk to purchase (DM to purchase). (NOTE: budgeted production in October is required in order to complete the direct materials budget for September.) Viscose for lining Viscose fabric is purchased in units of 10 yards. 2.2 yards of viscose fabric are required for each jacket produced. Management desires to have viscose fabric on hand at the end of each month equal to 11 percent of the following month's production needs. Use the @ROUND function to round to the nearest whole number the number of viscose yards desired in ending inventory. The beginning inventory, July 2023, is expected to be 187 yards. 10 yards of viscose fabric is expected to cost $110. Use the @MROUND function to round to the nearest tens the number of viscose fabric yards to purchase (DM to purchase). (NOTE: budgeted production in October is required in order to complete the direct materials budget for September.) Prepare a Direct Materials budget. Also, because two direct materials are required for production - silk and viscose fabric - you will need a separate schedule for each direct material. 4. Each jacket requires 12 hours of direct labor. H&BClothing uses a series of drawing, cutting, and sewing machines set up for specialized operations to achieve production efficiencies. Direct labor costs the company $25 per hour. Prepare a Direct Labor budget. 5. H&BClothing budgets indirect materials (e.g., shoulder pads, stitching threads, buttons, labels, and packaging) at $35.50 per jacket. H&BClothing treats indirect labor and utilities as mixed costs. The variable components are $20.00 per jacket for indirect labor and $5.50 per jacket for utilities. The following fixed costs per month are budgeted for indirect labor, $25,000, utilities, $2,200, and other, $22,000. Prepare a Manufacturing Overhead budget. 6. Variable selling and administrative expenses are $45.50 per jacket sold. Fixed selling and administrative expenses are $35,000 per month. These costs are not itemized, i.e., the budget has only two line items variable operating expenses and fixed operating expenses. Prepare an Operating Expenses budget. 7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 9,500 jackets. 3 8. Prepare a Budgeted Income Statement for the quarter for H&BClothing. Assume interest expense of $0, and income tax expense of 21% of income before taxes