1. The sales budget of Dream Bedding Company over the next 4 months is as follows:

Month Sales Quantity

January 3,600

February 3,800 March 3,500

April 3,000

Other information: Ending inventory of finished goods for each month needs to be 40 % of next months sales. This requirement was met with respect to the beginning inventory of finished goods as at 1 January.

Each unit is expected to sell at $60 before any discount

The company offers a 2% discount if cash is received within 15 days after invoice date.

Invoices are issued in the month of sale Cash is collected 40% within the month (20% after the prompt payment discount and 20% with no discount), 50% the following month, 5% the next month and 5% is not collected.

1. The budgeted sales for Q1 (January to March) is:

A. 13,900 units B. $ 834,000 C. $ 654,000 D. $ 640,920 E. 10,660 units

2. The production budget for Q1 is:

A. 13,660 units B. 10,900 units C. 10,660 units D. 11,400 units E. 13,900 units

3. The budgeted cash receipts for April are: A. $ 187,680 B. $ 71,280 C. $ 72,000 D. $ 70,560 E. $ 171,000

please write calculation process