15) a-d

15. See parts and Worth 25 points 2 Projected sales are given below for one of Florean Fortescue's main products 25.000 5 February 40.000 units 6 March 65,000 units 1 April 45,000 units 8 May 35.000 units lune 30 000 units Required a) Prepare a sales budget and a schedule of expected cash collections by month for the first quarter (no total column) b) Prepare a budget showing the required production each month for the first quarter (no total column) Prepare a raw material purchases budget for each month for the first quarter (no total for the quarter Decewary) d) Prepare a budget showing the cash disbursements for rw materials for March 4 January 11 The product sells for $20 each and customers typically pay in the following manner 20% pay in the month of sale, 50% pay in the month following 12 the sale, and 30% pay in the second month following the sale. November's total sales were $850,000 and December's total sales were $900,000 13 Rad debts are negligible and can be ignored. 15 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on December 31 the finished goods 16 inventory totaled only 4,000 units 19 Each unit of product requires three pounds of specialised material, which is purchased for $2.50 per pound. Since the production of this 20 specialised material by Fortescues suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each 21 month equal to 30 of the next month's production needs. This requirement had been met on January 1 of the current year 23 The Company pays its suppliers 24 month following the purchase in the month of purchase. So in the month following purchase, and the remaining 10% in the second