$($ABC$)$ Inc. preparing their annual budget for $2023$ financial period. The following data were available concerning this period:

$-$ The monthly sales in units:

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$12000$

$12500$

$10000$

$18000$

$20000$

$25000$

$25000$

$25000$

$20000$

$16000$

$12000$

$10000$

$-$ Sales of Jan and Feb $2024$ are expected to be $13000$ and $15000$ units respectively.

$-$ Sales price for the first four months is $$20$ and is expected to increase by $25\%$ after that.

$-$ The company has a policy to keep $20\%$ of sales of the next month plus $1000$ units as an inventory policy.

$-$ Each unit required three raw materials to be produced as follow:

The raw material

DM $($A$)$

DM $($B$)$

DM $$

Quantity$/$unit

$5$ kg

$3$ kg

$2$ kg

Price$/$kg

$$0\mathrm{.}5$

$$0\mathrm{.}75$

$0\mathrm{.}40$

$-$ The company has a policy to keep $10\%$ of next month production as ending inventory for $($A$)$ and $($B$)$ and $25\%$ of DM $($C$).$

$-$ The company uses normal costing system in its plant. The plant has a machining department and an assembly department. The company allocates overhead costs based on two costs pools $($the machining department OH allocated to production based on actual$-$machine hours, and the assembly department OH allocated to production based on actual direct labor hours$).$ The budgeted costs and hours for $2013$ were as follow:

Department

Machining

Assembly

Machine hours

$616,500$

$112,000$

DLH

$305,250$

$411,000$

Rate$/$DLH

$$1\mathrm{.}25/$DLH

$$1\mathrm{.}75/$DLH

OH costs

$$246,600$

$$369,900$

$-$ Total budgeted marketing, distribution and customer service costs for the year are $$898,500.$ Of this amount, $$411,000$ are considered fixed $($and include depreciation of $$135,000).$ The remainder varies with sales.

$-$ The budgeted general and administrative costs includes the following monthly costs $($all are fixed$)$:

Salaries

$$15,000$

Rent

$$5,000$

Depreciations

$$12,000$

Insurance

$$2,000$

Others

$$4,000$

$-$ The budgeted capitalized expenditures and revenues are as follow:

$1.$ Paying to bonds payable an amount of $$250,000$ plus $$25,000$ as bonds interest during March $2013.$

$2.$ Purchasing equipment at a budgeted amount of $$500,000,$ and sell the old equipment at a budgeted amount of $$125,000.$ The purchase is expected to take place in June and selling the old equipment is expected to be in August.

$3.$ There are rent revenues at an amount of $$30,000$ semi$-$annually, collected in July and January of each year.

$-$ Cash from sales revenues are collected as follow: $40\%$ in the month of sales, $30\%$ in the month next of the month of sale, $22\%$ in the month after, and the last $8\%$ are uncollectible.

$-$ Payment to DM $($A$)$ and $($B$)$ are as follow: $70\%$ in the month of sale and $30\%$ in the month next to the month of sale. Payment to DM $($C$)$ is in the same month of sale $($i$.$e$.,$ all DM $($C$)$ purchases are in cash$).$

$-$ Sales of Nov and Dec $2022$ were $12,000$ units and $11,000$ units and the sales price was $$19$ per unit.

$-$ Accounts payable in $31$st of Dec $2022$ was $$55,000.$

$-$ All other expenses are paid as incurred.

$-$ Cash beginning balance was $$40,000.$

$-$ In case of deficit, the company will borrow the shortage from the bank at $12\%$ annual interest rate.

$-$ In case of surplus, the company will invest the extra cash in short term investment at a $6\%$ annual return.

$-$ The company will not borrow unless they sold their investment.