You have completed the budgets for the production inputs for 2020, summarized below.

Direct materials:

$30,624-Jan

$50,945-Feb

$75,547-Mar

$76,000Apr

$63,230-May

$50,584-June

Direct labour:

$30,019-Jan

$49,940-Feb

$74,055-Mar

$74,499-April

$61,981-May

$49,585-June

Manufacturing overhead:

$12,615-Jan

$20,986-Feb

$31,120-Mar

$31,307-April

$26,046-May

$20,837-June

Direct materials

$41,678-July

$32,772-August

$29,923-Sept

$27,608-Oct

$23,867-Nov

$22,528-Dec

Direct labour:

$40,855-July

$32,126-August

$29,332-Sept

$27,062-Oct

$23,395-Nov

$22,083-Dec

Manufacturing overhead:

$17,169-July

$13,500-August

$12,326-Sept

$11,372-Oct

$ 9,832-Nov

$ 9,280-Dec

The cost per unit of the open inventory in January is expected to be $705 per unit.

You were also provided with the following to use for the selling and administrative budget.

Prior-year monthly expense information and assumptions:

Shipping costs

$45per unit (no expected change)

Wages and salaries

$20,000expected to increase by 3% inflation only

at the beginning of the year and then remain constant

Depreciation

$8,200expected to stay the same

Utilities

$7,100expected to increase by 3% in February

and then remain constant

Insurance

$4,100expected to increase by 2% on renewal in Apriland then remain constant

Miscellaneous

$2,900expected to stay the same

a) How do I preparethe monthly cost of goods sold budget for 2020.

b) How do I prepare the monthly selling and administrative expenses budget for 2020.

c) How do I prepare the annual budgeted net income statement for 2020, ignoring income taxes based upon the information provided.