Based on the given information below can you please answer the following questions:

a. Construct a sales budget and a schedule of cash receipts for each of the months and total for the year

b. Construct a production budget for each month and the year to calculate the number of units to be produced and desired ending finished goods inventory

c. Construct a raw materials budget and a schedule of cash payments for materials for each month and the year.

d. Construct a direct labor budget for each month and the year including direct labor cost and cash payments

e. Construct a Manufacturing Overhead budget for each month and the year.

f. Calculate the cost of producing the units each month and the year.

g. Compute ending Inventory in Dollars and units for each month of the year for both Finished Good and Raw Materials Inventories

h. Compute total adjusted cost of goods sold for each month and the year using FIFO inventory valuation.

Example Inc. has just closed the books for the year ending December 31, 2020. Based on the information provided, answer the questions that follow. December 31, 2020 Balance Sheet ASSETS LIABILITIES AND EQUITY Cash $56,000 Accounts Payable $200,000 Accounts Receivable, net 980,000 Salary Payable 125,000 Inventories ** Interest Payable 5,833 Finished Goods 290,000 Bank Line 4% 610.000 Raw Materials 40,000 330.000 Current Assets 1,366,000 Current Liabilities 730,833 Term Debt 7% 500.000 Fixed Assets, net of accumulated depreciation 1,314,683 Total Liabilities 1,230.833 Common Stock 111.250 Retained Earnings 1.128.600 Total Equity 1.449.850 Total Assets $2,680,683 Total Liabilities & Equity $2,680,683 *** Inventory Finished Goods represents 20,000 units of finished goods at a cost of $14.50 per unit, Raw materials for 10,000 units at 54.00 per units, Work-in process inventory is zero at December 31. The company is now in the process of finishing its projections for the year ended December 2021. Historical sales for the last quarter as well as sales projections for the next thirteen months are shown below: Month Units Sold and Sales Price October, 2020 (Actual) (50.000 units at $20,00 each) November, 2020 (Actual) (50,000 units at $20,00 each) December, 2020 (Actual) (50,000 units at $20.00 each) January, 2021 (57,000 units at $26.00 each) February (62,000 units at $26.00 each) March (65,000 units at $26.00 each) April (70,000 units at $26.00 each) May (82,000 units at $26.00 cach) June (89,000 units at $26.00 each) July (90,000 units at $26.00 each) August (92.000 units at $26.00 each) September (94,000 units at $26,00 each) October (96,000 units at $26.00 each) November (98,000 units at $26.00 each) December (100,000 units at $26.00 each) Expected Monthly sales after December 2021 (105,000 units at $26.00 cach) The company has had steady sales of 50,000 units per month for the past several years, but the factory has sufficient capacity to produce 150,000 units per month, without having to invest in significant additional fixed assets. Changes in the economy have resulted in higher sales forecasts For forecasting purposes, the company assumes 25% of sales are collected the month of the sale, 50% in the subsequent month, 24% in the second month after the sale and 1% uncollectible. The percent of sales method is used for allowance for Doubtful Accounts. Bad Debts are written off each month. Desired ending finished goods inventory is 30% of next month's sales. This is lower than the prior level Purchases of raw materials are made in the month they are used in production and now cost $4.00 each. Two units of raw material is needed for each unit produced. Payments for raw materials are made half in the month of purchase and half in the month after purchase. Accounts payable represents unpaid purchases of raw materials. Raw material desired ending inventory is 15% of next month's material required for production. This percent has also changed for this budget. Labor costs are $16 per hour and each unit uses. 4 hours of direct labor. Direct labor is paid half in the month incurred and half the following month. Direct labor rates have increased from S10/hour in the period just ended to S16/hour for this budget, Production overhead is allocated at $4 per unit produced and is paid in the month incurred. All production equipment is leased and therefore no depreciation is necessary as part of overhead, Work in Process Inventories equal zero at the end of each month, Selling and administrative total fixed costs are $80,000 per month and sales commissions are 83.00 per unit sold both are paid monthly. In addition, depreciation on Office Fixed assets is $25,000 per month. This is on equipment used in the office. The line of credit interest rate is 4% APR. Interest on the line is paid at the end of each month based on the ending lime balance at the end of the previous month. The interest of 7% on the Term Loan will be paid every November 1. However, interest is accrued on the loan every month. Additional office equipment will be purchased with cash at the end of June for 300,000 and the end of November for $300,000 and will be added to Office fixed assets. The equipment will be depreciated straight-line over four years with depreciation beginning in July. This results in an additional $2,000 per month beginning in July with no change to depreciation for the November purchase The company will declare and pay a $200,000 dividend in December Targeted Cash at each month end is $50,000 beginning January 2021, with any excess cash being used to pay down the Bank line of credit and any shortfall below $50,000 funded by borrowing against the line. Any excess cash above $50,000 will be invested in short term securities once the bank line of credit has been completely paid off. Accumulated short term investment balances can be used to cover cash shortfalls if available. (For simplicity, assume any investment does not yield any monthly cash flow and do not accrue the interest.) The company uses an estimated tax rate of 21%, with estimated payments made monthly. Example Inc. has just closed the books for the year ending December 31, 2020. Based on the information provided, answer the questions that follow. December 31, 2020 Balance Sheet ASSETS LIABILITIES AND EQUITY Cash $56,000 Accounts Payable $200,000 Accounts Receivable, net 980,000 Salary Payable 125,000 Inventories ** Interest Payable 5,833 Finished Goods 290,000 Bank Line 4% 610.000 Raw Materials 40,000 330.000 Current Assets 1,366,000 Current Liabilities 730,833 Term Debt 7% 500.000 Fixed Assets, net of accumulated depreciation 1,314,683 Total Liabilities 1,230.833 Common Stock 111.250 Retained Earnings 1.128.600 Total Equity 1.449.850 Total Assets $2,680,683 Total Liabilities & Equity $2,680,683 *** Inventory Finished Goods represents 20,000 units of finished goods at a cost of $14.50 per unit, Raw materials for 10,000 units at 54.00 per units, Work-in process inventory is zero at December 31. The company is now in the process of finishing its projections for the year ended December 2021. Historical sales for the last quarter as well as sales projections for the next thirteen months are shown below: Month Units Sold and Sales Price October, 2020 (Actual) (50.000 units at $20,00 each) November, 2020 (Actual) (50,000 units at $20,00 each) December, 2020 (Actual) (50,000 units at $20.00 each) January, 2021 (57,000 units at $26.00 each) February (62,000 units at $26.00 each) March (65,000 units at $26.00 each) April (70,000 units at $26.00 each) May (82,000 units at $26.00 cach) June (89,000 units at $26.00 each) July (90,000 units at $26.00 each) August (92.000 units at $26.00 each) September (94,000 units at $26,00 each) October (96,000 units at $26.00 each) November (98,000 units at $26.00 each) December (100,000 units at $26.00 each) Expected Monthly sales after December 2021 (105,000 units at $26.00 cach) The company has had steady sales of 50,000 units per month for the past several years, but the factory has sufficient capacity to produce 150,000 units per month, without having to invest in significant additional fixed assets. Changes in the economy have resulted in higher sales forecasts For forecasting purposes, the company assumes 25% of sales are collected the month of the sale, 50% in the subsequent month, 24% in the second month after the sale and 1% uncollectible. The percent of sales method is used for allowance for Doubtful Accounts. Bad Debts are written off each month. Desired ending finished goods inventory is 30% of next month's sales. This is lower than the prior level Purchases of raw materials are made in the month they are used in production and now cost $4.00 each. Two units of raw material is needed for each unit produced. Payments for raw materials are made half in the month of purchase and half in the month after purchase. Accounts payable represents unpaid purchases of raw materials. Raw material desired ending inventory is 15% of next month's material required for production. This percent has also changed for this budget. Labor costs are $16 per hour and each unit uses. 4 hours of direct labor. Direct labor is paid half in the month incurred and half the following month. Direct labor rates have increased from S10/hour in the period just ended to S16/hour for this budget, Production overhead is allocated at $4 per unit produced and is paid in the month incurred. All production equipment is leased and therefore no depreciation is necessary as part of overhead, Work in Process Inventories equal zero at the end of each month, Selling and administrative total fixed costs are $80,000 per month and sales commissions are 83.00 per unit sold both are paid monthly. In addition, depreciation on Office Fixed assets is $25,000 per month. This is on equipment used in the office. The line of credit interest rate is 4% APR. Interest on the line is paid at the end of each month based on the ending lime balance at the end of the previous month. The interest of 7% on the Term Loan will be paid every November 1. However, interest is accrued on the loan every month. Additional office equipment will be purchased with cash at the end of June for 300,000 and the end of November for $300,000 and will be added to Office fixed assets. The equipment will be depreciated straight-line over four years with depreciation beginning in July. This results in an additional $2,000 per month beginning in July with no change to depreciation for the November purchase The company will declare and pay a $200,000 dividend in December Targeted Cash at each month end is $50,000 beginning January 2021, with any excess cash being used to pay down the Bank line of credit and any shortfall below $50,000 funded by borrowing against the line. Any excess cash above $50,000 will be invested in short term securities once the bank line of credit has been completely paid off. Accumulated short term investment balances can be used to cover cash shortfalls if available. (For simplicity, assume any investment does not yield any monthly cash flow and do not accrue the interest.) The company uses an estimated tax rate of 21%, with estimated payments made monthly