Project 4-Operating budgets for a manufacturing organisation (Chapter 6) Tait Manufacturing supplies large wholesalers and retailers. As the accountant you have been asked to prepare operating budgets for the next financial year. Sales 1. Estimated sales in units are: 1/7-30/9 1/10-31/12 15 000 First quarter Second quarter 1/1-31/3 1/4-30/6 1/7-30/9 16 500 17 000 18 000 16 000 quarter Fourth quarter Fifth quarter Selling price per unit will continue to be $75 2. 3. 4. The pattern of collections from accounts receivable is anticipated to be: 20% of sales are for cash, 80% of sales are on credit. 85% in the quarter of sale; and, 15% in the quarter following the sale. Inventories 1. Production is organised so that finished goods inventory at the beginning of each quarter will be 25% of the expected unit sales for that quarter