Zayed University College of Business - Acc 203-008 Managerial Accounting Project - Semester: Fall 2020 Project Case: Total 100 points (Chapter 9, CLO# 3,41 Race Company manufactures 'helmets' for car racing. The company is preparing its budget for 2021. The first step is to plan for the first quarter of 2021 year. The company has collected the following information, Sales: Sales for November 2020 100,000 units Sales for December 2020 105,000 units Expected sales for January 2021 110,000 units The company expects sales volume in 2021 to increase by 10% each month. The expected selling price per unit is aed 100 in January and February, and aed 105 in March, 2021. The company likes to keep 10% of next month's unit sales in ending inventory. All sales are on credit. 85% of the credit sales are collected in the month of sale and 15% in the month after sale. Accounts receivable on December 31, 2020, totaled: aed 180,000 5 Kilograms (Kgs) of direct materials are needed to produce one unit. The company 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, 2020, totaled 12,000 Kgs. Direct materials cost is acd50 per Kg Payment for materials is made within 15 days, 50% is paid in the month of purchase, and 50% is puid after the month of purchase. Accounts payable on December 31, 2020 is: aed130,000. Labor requires 15 minutes per unit for completion, and is paid at a rate of aed30 per hour. Manufacturing overhead: Indirect materials aed0.30 per labor hour Indirect labor aed0.50 per labor hour Utilities acd0.45 per labor hour Maintenance acd0.25 per labor hour Factory supervisor's aed42,000 per month salary Factory Depreciation aed 16,800 per month Property taxes Acd3,000 per month 1 per month per month Selling and administrative expenses: Sales commission Aed2 Per unit Salaries aed70,000 per month Advertising 20,000 per month Insurance 1,500 Office Depreciation 2,700 The cash balance on December 31, 2020, totaled aed200,000, but management has decided it would like to maintain a cash balance of at least aed80,000 beginning on January 31, 2021.Dividends are paid each month @ aed10 per share for 5,000 shares. The company has an open line of credit with national Bank. The interest rate is 20%. Required: we have to do it A. Prepare Budgets for the following, use EXCEL, spreadsheet, for the first quarter ending March 2021 (t.e. months January, February, and March 2021): (a) Sales budget (units and Dirhams). [10 Marks (b) Production budget. [20 Marks) (c) Direct materials purchase budget (in Kilograms and Dirhams). 120 Marks (d) Direct labour budget (in hours and Dirhams). [10 Marks) (0) Manufacturing overhead budget. [10 Marks) Schedule of expected cash collections from customers, (15 Marks (@) Schedule for expected cash payments for materials purchases. [15Marks) Notes: 1) This project requires the use of EXCEL spreadsheets. 2) Put your answers in the attached excel answer template. In preparing each budget, adopt template similar to relevant one used in chapter 9. 3) Save your answers in an excel document, and save it as: YOUR NAME_UNIVERSITY ID PROJECT_FALL2020. Then SUBMIT' it on Bb. Good Luck 2