Given the information below, perform the following required tasks for HES, Inc.:

a- Prepare a monthly master budget for HES, Inc. for the year ended December 31, 2020, including the following schedules: Sales Budget & Schedule of Cash Receipts, Production Budget, Direct Materials Budget & Schedule of Cash Disbursements, Direct Labor Budget, Manufacturing Overhead Budget, Ending Finished Goods Inventory Budget, Selling and Administrative Expense Budget, and Cash Budget.

b- Prepare a budgeted income statement and a budgeted statement of retained earnings for the year ended December 31, 2021, using absorption costing.

c- Prepare a budgeted balance sheet at December 31, 2020.

d- Prepare a budgeted income statement for the year ended December 31, 2020, using variable costing. Assume the per unit variable cost for 2019 was $7.0520.

During the spring of 2019, Jack, the HES, Inc. controllers, spent considerable time with Andrea, the Managers of Marketing, putting together a sales forecast for the next budget years. Unfortunately, they submitted their resignation and a sales forecast to the President Council of HES, Inc. Connor. Their sales forecast consisted of these few lines: For the year ended December 31, 2019: 575,000 units at $11.00 each For the year ended December 31, 2020: 600,000 units at $11.00 each For the year ended December 31, 2021: 600,000 units at $11.00 each *Consider expected sales for the year ended December 31, 2019 are based on actual sales to date and budgeted sales for the duration of the year. Assets Cash Accounts receivable Inventory-raw materials Inventory-finished goods Prepaid Insurance Prepaid property and business taxes Capital assets (net) Total assets S 103,365 703,250 9,000 9,125 84,000 19,200 824,000 1,751,940