Question Berufes Inc. produces and debutes lerent kinds of The information below about Berut's operation has been assembled to assist budget preparation. The company regeringsmaster budget for the first quarter of 2020. The budget wit detailoch month's activity and the activity for the quarter in total. The uniter budget will be based on the following information Seling price was per unit in 2019 and will not change during 2020. Actual and Estimated Sales are as follows Estimated 2000 Jan 16.000 February 18.00 Mar O DO Apal 16.000 May 19.000 The company predecesoru units cash month to meet that made a deired memory level equal to 25 of existinuted sales.Finished good inwestory at the end materiach month for the current m's production resented 20of net ons predoction requement fac unit of product requires Nograms of raw material to operatoram. These were 25,000 logam of ww material Invertory at the end of 2019. Bere 20% of the raw mater purchases in the mom purchase and the remains the month & Fonduring what color follow- Factory Managerry $ 8.500 $3,400 Depreciation of factory went Total des follow- Atvering 52.000 Deprecaten 53.000 Trance $ 90 Other 582950 Variable selling and active expenses consist of 3/t for sing and so of sales for comis $50 The balance sheet al December 31, 2019 fotowe $70,000 Accounts Recette 512.000 Invertorykow Material $ 12,500 Invertory Fished Goods 2,000 Hast and Expert $1,100,000 Less Accumulated Depreciation CHOOL 920.000 Telets SLSW.500 abilities and Equity Accounts Payable 5 27,500 Long Term Notes puble 813.000 Common Shares 635.000 Matineaming 115.000 Totalt and Shorty $5.500 Additional information is as follows All cash paymentsete purchases of materials we made months curred All browser at the beginning of each month and all repayments occur at the end of the ON portrettes and com. A minimun cash bilance of $40,000 is required at the end of each month Arquie 1. Prepare the following Sales budget 1. The balance sheet as of December 31, 2019 is as follows - Assets Cash $ 70,000 Accounts Receivable 512,000 Inventory: Raw Materials $ 12,500 Inventory: Finished Goods 82,000 94,500 Plant and Equipment $1,100,000 Less: Accumulated Depreciation (180,000) 920,000 Total Assets $1,596,500 Liabilities and Equity Accounts Payable $ 27,500 Long-Term Notes payable 819,000 Common Shares 635,000 Retained Earnings 115.000 Total Liabilities and Shareholder's Equity $1,596,500 Additional information is as follows All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the month. Ignore interest rates and income tax. A minimum cash balance of $40,000 is required at the end of each month. Required: 1. Prepare the following budgets for each of the first three months of 2020. (21 marks] a. Sales budget. b. Production budget. c. Raw materials purchases budget. d. Direct labour and manufacturing overhead budget. e. Ending finished goods inventory budget f. Selling and administrative budget. g. Cash budget. 2. Prepare a budgeted income statement for the first three months of 2020 and a budgeted balance sheet as of March 31, 2020,19 marks] Question Berufes Inc. produces and debutes lerent kinds of The information below about Berut's operation has been assembled to assist budget preparation. The company regeringsmaster budget for the first quarter of 2020. The budget wit detailoch month's activity and the activity for the quarter in total. The uniter budget will be based on the following information Seling price was per unit in 2019 and will not change during 2020. Actual and Estimated Sales are as follows Estimated 2000 Jan 16.000 February 18.00 Mar O DO Apal 16.000 May 19.000 The company predecesoru units cash month to meet that made a deired memory level equal to 25 of existinuted sales.Finished good inwestory at the end materiach month for the current m's production resented 20of net ons predoction requement fac unit of product requires Nograms of raw material to operatoram. These were 25,000 logam of ww material Invertory at the end of 2019. Bere 20% of the raw mater purchases in the mom purchase and the remains the month & Fonduring what color follow- Factory Managerry $ 8.500 $3,400 Depreciation of factory went Total des follow- Atvering 52.000 Deprecaten 53.000 Trance $ 90 Other 582950 Variable selling and active expenses consist of 3/t for sing and so of sales for comis $50 The balance sheet al December 31, 2019 fotowe $70,000 Accounts Recette 512.000 Invertorykow Material $ 12,500 Invertory Fished Goods 2,000 Hast and Expert $1,100,000 Less Accumulated Depreciation CHOOL 920.000 Telets SLSW.500 abilities and Equity Accounts Payable 5 27,500 Long Term Notes puble 813.000 Common Shares 635.000 Matineaming 115.000 Totalt and Shorty $5.500 Additional information is as follows All cash paymentsete purchases of materials we made months curred All browser at the beginning of each month and all repayments occur at the end of the ON portrettes and com. A minimun cash bilance of $40,000 is required at the end of each month Arquie 1. Prepare the following Sales budget 1. The balance sheet as of December 31, 2019 is as follows - Assets Cash $ 70,000 Accounts Receivable 512,000 Inventory: Raw Materials $ 12,500 Inventory: Finished Goods 82,000 94,500 Plant and Equipment $1,100,000 Less: Accumulated Depreciation (180,000) 920,000 Total Assets $1,596,500 Liabilities and Equity Accounts Payable $ 27,500 Long-Term Notes payable 819,000 Common Shares 635,000 Retained Earnings 115.000 Total Liabilities and Shareholder's Equity $1,596,500 Additional information is as follows All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the month. Ignore interest rates and income tax. A minimum cash balance of $40,000 is required at the end of each month. Required: 1. Prepare the following budgets for each of the first three months of 2020. (21 marks] a. Sales budget. b. Production budget. c. Raw materials purchases budget. d. Direct labour and manufacturing overhead budget. e. Ending finished goods inventory budget f. Selling and administrative budget. g. Cash budget. 2. Prepare a budgeted income statement for the first three months of 2020 and a budgeted balance sheet as of March 31, 2020,19 marks]