Assignment 6 Budgets This assignment relates to the following Course Learning Requirements: CLR 6 Budget for cash collections, cash disbursements, and cash flow. Objective of this Assignment: The objective of this assignment is to create budgets based on different scenerios Instructions: This assignment should be completed using this Excel document. Your assignment grade and the marked file will be available for your review within a week through the Gra Assignments need to be submitted on or before the due date specified by the Course Calendar in the Cou Upload your assignment via the Gradebook. This assignment is worth 10% of your final grade. There are a total of 20 marks. Each question can be found on its own tab. Complete all work and show all calculations on that worksheet as part marks can be awarded if the final an n a week through the Gradebook once it has been marked. urse Calendar in the Course Information section for assignment due dates. be awarded if the final answer is incorrect. Question 1 (10 marks) Pottery Manufacturing Limited has projected sales and production in units for the second quar October November December Sales 50,000 40,000 60,000 Production 60,000 50,000 50,000 Cash-related production costs are budgeted at $5 per unit produced. Of these production cost the month in which they are incurred and the balance in the following month. Selling and admi expenses will amount to $100,000 per month, paid in the month incurred. The accounts payab September 30 totals $190,000, which will be paid in October. All units are sold on account (as credit sales) for $14 each. There are no cash sales. Cash col sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale remaining 10% in the second month following the month of sale. Accounts receivable on Octo $500,000 ($90,000 from August's sales and the remainder from September). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for the Po b. Prepare a schedule for each month showing budgeted cash receipts for the Pottery M in units for the second quarter of the coming year as follows: ed. Of these production costs, 40% are paid in ng month. Selling and administrative curred. The accounts payable balance on are no cash sales. Cash collections from following the month of sale, and the ccounts receivable on October 1 totalled eptember). h disbursements for the Pottery Manufacturing Limited. (5 marks) h receipts for the Pottery Manufacturing Limited. (5 marks) Question 2 (10 marks) A sales budget is given below for one of the products manufactured by the Quick Production Limi July August September October November December 25,000 units 40,000 units 65,000 units 45,000 units 35,000 units 30,000 units The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on June 30 the finished goods inventory totalled only 4,000 units. Each unit of product requires three pounds of specialized material. Since the production of this specialized material by Quick's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on July 1 of the current year. Required: Prepare a budget showing the quantity of material to be purchased each month for July, Au and September and in total for the quarter. (3 marks for July, 3 marks for August, 3 marks September and 1 mark for total) uick Production Limited: h month for July, August r August, 3 marks for Assessment Criteria: Criteria Excellent Good Correct answered all two Answers most of the requirements requirements correctly or has demonstrated the correct methodology to arrive at a response (at least 1 of the requirements answered correctly) Budget for cash collections, cash disbursements, and cash flow. Correct answered all requirements Budget for cash collections, cash disbursements, and cash flow. Facilitator Feedback Total Points Assignment Grade Did not correctly complete the requirement, but has demonstrated the correct methodology to arrive at a response Requires improvement Does Not Meet Requirements Points Answers none of the requirements correctly but has demonstrated the correct methodology to arrive at a response in some of the requirements Answers none of the requirements correctly and has not demonstrated the correct methodology to arrive at a response to the requirement. 10 Answers none of the requirement correctly but has demonstrated an acceptable approach to arrive at a response Answers none of the requirement correctly and has not demonstrated the correct methodology to arrive at a response to the requirement. 10 /20 /10