You have been asked to prepare a 3 year budget forecast for the manufacturing of Donas Sisters dolls. Donas Sisters outsources the production of the dolls to the company Dolled Up.

Dolled Up utilises a traditional manufacturing cost flow inventory and accounting system and has provided you with the following information as at December 31^st 2019 to create a budget from.

2019 Year data
Sales (Units)	825,000
Price (average 2019 price received)	$24.95
Prime Costs (per unit)
Ingredients & Packing (including various fabric, wading and plastic head plus packaging costs)	$12.00
Direct Labour	$7.50
Variable Manufacturing Costs (per unit)	$1.10
Factory Management Salaries (per annum)	$650,000
Factory Plant & Equipment Depreciation (per annum)	$350,000
Sales and Marketing Costs (per annum)	$925,000
Finance Costs (per annum)	$862,000
Non-Factory Administration Costs (per annum)	$885,000

Inventory on Hand (at valuation):
Ingredients & Packaging (250,000 units)	$3,750,000
Finished Goods (175,000 units)	$4,366,250

Dolled Up maintains a target safety stock of raw materials inventory and finished goods inventory amounting to the equivalent of three (3) weeks of the current years budgeted unit sales. At the end of the 2019 calendar year there were 175,000 completed units of Uno Dolls in the warehouse as Finished Goods. There are enough raw materials on hand to manufacture 250,000 units of Donas Sisters dolls.

The Research and Marketing Department at Donas Sisters predict that unit sales of the Donas Sisters doll will continue to grow for the next 3 years at a rate of 5% above the 2.95% current long term rate of inflation (budgeted 7.95% increase per annum), however after the 3 years sales will drop off significantly. The company is budgeting to achieve a year on year price increase of 4.5% over the long term inflation rate (7.45% annual increase). All other costs including direct labour, material costs, and other overhead and administration costs are expected to increase annually at the rate of inflation. The company pays tax at the Australian Corporate tax rate which is expected to hold at 30%. The inflation rate of 2.95% is expected to hold over the 3 year budget period.

Dolled Up recently had to modify an old factory to be able to manufacture the Donas Sisters dolls. However due to the expected growth in sales, the factory is nearing its practical manufacturing capacity of 950,000 dolls.

Required:

Using Excel develop a Sales, Production and Purchase budget as well as a budgeted Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an Income Statement for each of the 3 years in the budget period (commencing January 1, 2019)