Reference no: EM132662746

Data regarding Bengal Corporation are as follows:

(a). Budgeted Sales for the year 2020 are:

January : 20,000 units

February: 35,000 units

March: 35,000 units

April: 45,000 units

May: 60,000 units

June: 75,000 units

(b). Selling Price per unit is 185 Taka. All sales are on account

(c). Collection pattern are as follows: 55% is collected in the month of sales, 30% is collected following month of sales and the remaining 15% is collected the second month following the month of sales. There are no uncollectible. There were no Accounts Receivables at the beginning of the year.

(d). The company wants ending inventory to be equal to 25% of the following month's estimated sales in units. There is no inventory at the beginning of the year.

(e). Cash disbursement in relation to Direct Material, Direct Labour, MOH and Selling & Admin expenses for the first six months of the year are as follows:

Direct Material:

January : $938,000

February: $960,000

March: $870,750

April: $920,000

May: $900,000

June: $850,250

Direct Labour:

January : $148,500

February: $148,500

March: $115,000

April: $115,000

May: $148,000

June:$148,000

MOH:

January : $189,375

February: $189,375

March: $166,875

April: $167,700

May: $166,875

June: $189,375

Selling & Admin:

January : $325,000

February: $300,000

March: $325000

April: $320,000

May: $300,000

June: $325,000

Required:

Problem 1: ^{Prepare the Sales Budget, Schedule of Expected Cash collection and Production Budget for the first quarter of the year 2020.}