Version 2 Part I The data below pertains to the first quarter of Alpha Company which manufactures toys. Below is the estimated sales (in units): January 60,000 February 80,000 March 90,000 April May 50,000 June 80,000 70,000 a. The selling price of the toy is $12 per unit. b. All sales are on account. Based on past erience, sales are collected in the following pattern: Month of sale 40% Month following sale 55% Uncollectible 5% c. Sales for December of last year totaled $200,000. d. The company maintains finished goods inventories equal to 15% of the following month's sales. e. Each toy requires 4 kilos of raw materials. f. The company requires that the ending inventory of raw materials be equal to 20% of the following month's production needs. g. The raw material costs $1.30 per kilo. h. 30% of a month's purchases of raw materials is paid for in the month of purchase; the remainder is paid after two months i. The accounts payable on December 31 of last year was $54,000. Required for Part I Prepare: a. Prepare a sales budget, by month and in total, for the first quarter. (3 marks) b. Prepare a schedule of expected cash collections, by month and in total, for the first quarter. (15 marks) c. Prepare a production budget for each months of the first quarter. (10 marks) d. Prepare a direct materials budget, by month and in total, for the first quarter. (12 marks) e. Prepare a schedule of expected cash disbursements, by month and in total, for the first quarter. (15 marks) Total of Pat I (55 marks)