20. Hagen Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales $300,000 330,000 350,000 Budgeted D.M. Purchases $60,000 70,000 80,000 January February March Hagen's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Hagen's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Instructions (a) Prepare a schedule of expected collections from customers for March. (b) Prepare a schedule of expected payments for direct materials for March. 21. Garver Industries has budgeted the following unit sales: Units 10,000 8,000 9,000 11,000 15,000 2020 January February March April May The finished goods units on hand on December 31, 2019, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2019. Instructions For the first quarter of 2020, prepare (1) a production budget and (2) a direct materials budget