Document1 - Microsoft Word View AaBbCcDd AaBbCcDd AaBbCc AaBbCc 1 Normal AaBl AaBbCcL AaBbCcDd AaBbCcDd AaBbC No Spacing Heading 1 Heading 2 Title Subtitle Paragraph Subtle Emp.. Emphasis Intense Styles Question 4: (24 marks) Alibaba Pty Ltd manufactures and sells plastic toy guns. The toy's unit selling price is $12. Below are requirements of direct material and direct labour to manufactureonetoy gun: Direct 1.2kg of plastic material Direct labour 1.2 hours at $3.5 per kg at $22.50 per hour The company plans the inventory levels from June to November as in the following table: Raw material Finished goods Beginning balance Ending balance Beginning balance Ending balance June 576 648 160 200 July 648 816 200 240 August 816 936 240 320 Septembe 936 948 320 300 October 948 968 300 340 Novembe 968 1004 340 300 Expected unit sales (number of toy guns) for the following months: June 880 July 800 August 960 O Hi 12'C L hp 112 prt sc f10 16 f7 f8 DII + 144 & 6 7 8 9 P T Y O M Ueview View Document1 - Microsoft Word AaBbCcDd AaBbCcDd AaBbC( AaBbCcl AaBl 1 Normal 1 No Spacing AaBbCcL AuBbCcDd AaBbCcDd A Heading 1 Heading 2 Title Subtitle Paragraph Subtle Emp- Emphasis Int vary Styles August 816 936 Septembe 240 320 936 948 320 October 300 948 968 300 Novembe 340 968 1004 340 300 Expected unit sales (number of toy guns) for the following months: June 880 July 800 August 960 September 1,280 October 1,200 November 1,360 Alibaba usually adopts a single application rate of $0.85 per unit produced for variable manufacturing overhead. According to the company's production manager, the annual fixed manufacturing overhead will be approximately $15,000. Expected monthly expenses of selling and administrative are estimated $2,080 per month plus $1.20 per unit sold. Required: Part 1. Prepare the following for Alibaba for the third quarter (July, August, and September). Include each month as well as the third quarter total for each budget. a. Sales budget.[4 marks] Click or tap here to enter text. + 11 O or f10 DDI 9 f8 144 $7 + 16 15 & 8 9 % 15 6 7 O P T Y UDocument1 - Microsoft Word View AaBbCcDd AaBbCcDd AaBbCc AaBbCcl AaBl AaBbCcLA [ AaBbCcDd 1 Normal AaBbCcDd 1 No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emp. Paragraph Emphasis Style selling and administrative are estimated $2,080 per month plus $1.20 per unit sold. Required: Part 1.Prepare the following for Alibaba for the third quarter (July, August, and September). Include each month as well as the third quarter total for each budget. a. Sales budget.[4 marks] Click or tap here to enter text. b. Production budget.(4 marks] Click or tap here to enter text. c. Direct materials purchases budget in units and dollar amount.(4 marks] Click or tap here to enter text. O M prt DDI f10 fg 14 $7 f6 & 8 9 % 5 6 7 O P Y UDocument1 - Microsoft Word Review View AaBbCcDd AaBbCcDd AaBbCc AaBbCcl AaBl AaBbCcL AaBbCcDd AaBbCcDd Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emp Emphasis Paragraph Styles c. Direct materials purchases budget in units and dollar amount.(4 marks] Click or tap here to enter text. d. Direct labor budget in hours and dollar amount.(4 marks] Click or tap here to enter text. e. Manufacturing overhead budget.[4 marks] Click or tap here to enter text. Part 2. Suppose that the company had $28,000 cash at bank at the beginning of the third quarter. Cash sales average 60 per cent of total sales (refer to your answer to part a). Credit sales are collected 50 per cent in the month of sale and 50 per cent in the month following sale. Prepare budgeted cash receipts. Include each month (July to September) as well as quarter 2 totals.[4 marks] Click or tap here to enter text. * 111 O hp ins 112 71 10 DDI f9 f8 144 $7 + 16 10 + f5 & % 8 5 6 7 P