Zim Ltd. Sales Budget Year Ending December 31, 2022 Is provided Expected Unit Sales Selling Price Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 3,000 3,150 3,350 3,520 $ 75 $ 75 $ 75 $ 75 $ 13,020 75 $ 236,250 $ 251,250 $ 264,000 $ 976,500 Total Expected Sales $ 225,000 Cost information for the year is as follows: Direct material cost per unit (2 kg x $1.50 per kg) Direct labour cost per unit (1 hour x $15.00 per hour) Variable manufacturing overhead per unit $3.00 $15.00 $2.50 Total fixed manufacturing overhead (includes $100,000 depreciation) $200,000 Total general and administrative expenses (includes $70,000 depreciation) $150,000 Additional Information: 1. Required finished goods ending inventory is 10% of next quarter's sales. 2. Required ending direct materials inventory is 500 kgs. 3. 40% of sales are collected in the current quarter and 60% are collected in the following quarter. 4. All costs are paid in the quarter incurred except for direct materials that are paid 70% in the current quarter and 30% in the next quarter. 4. costs are paid in the quarter incurred except for direct materials that are paid 70% in the current quarter and 30% in the next quarter. 5. January 1 accounts receivable balance is $120,000, accounts payable is $5,000, and finished goods inventory is 300 units. Required (round all answers to the nearest dollar): 1. Prepare the company's production budget for Quarter 1 and Quarter 2, in good form. (6 marks) 2. Prepare the company's direct material budget for Quarter 1 and Quarter 2, in good form. (5 marks) 3. How much cash will be collected from customers in Quarter 2? (3 marks) 4. Calculate the company's budgeted cost of goods sold for the year. (5 marks) Paragraph B I UA Answer - Part 1: & + *** D