Wilson Ltd is in process of making budget for coming year. Marketing department of the company has estimated following units of sales 1st 2nd 1st Half Half (Next Year) Estimated units 38520 38500 33000 of sales Half (a) Selling price of each unit is Rs.505 (b) 0.69999999999999996 of total sales will be cash sales and remaining are credit. 0.40000000000000008 Of credit sales are collected in the Half in which sales are made remaining are collected in the half following the sales. Accounts receivables at the beginning of 1st Half is Rs.200,000 all of which will be collected in 1st Half (c) Desired inventory of finished goods units are of unit sales of next Half. Beginning inventory of finished goods at the 1st Half is 2,500 units (d) Each unit require 8 ounce of material and price of material per ounce is Rs.25. All purchases of direct material are on account. 70% payment will be made in the Half in which purchases are made and remaining in the next half. There were no beginning accounts payable at the beginning of 1st Half (e) Each unit require 1.5 of direct labour hour and rate per hour for direct labour is Rs.50 (f) Variable manufacturing overheads are allocated on the basis of direct labour hours. Rate of variable manufacturing overheads are Rs. 10 per direct labour hour (9) Fixed manufacturing overheads for each half is Rs.800,000 which include depreciation amounted to Rs.250,000 (h) Detail of selling and administrative expenses are as under 1st Half 2nd Half Commission 10% of sales 15% of Sales Rent 130,000 160,000 Advertising 220,000 220,000 Depreciation 150,000 140,000 = (1) Beginning balance of Cash at the start of first Half was Rs.55,000. Company has arrangement with local bank to avail loan facility in case company face deficiency of cash. No desired ending balance of cash is required. Bank will charged 3% interest on loan. Requirements 1. Prepare Sales budget and schedule of expected cash collection 2. Prepare Production budget for 1st and 2nd Half and of Total 3. Prepare material purchase budget for both halves and of Total 4. Prepare cash disbursement schedule for material purchase 5. Prepare direct labour budget for 1st and 2nd Half and of Total 22/90 6. Prepare Manufacturing overhead budget for 1st and 2nd Half and of Total 7. Prepare selling and administrative expenses budget for 1st and 2nd Half and of Total 8. Prepare cash budget for both halves and of Total