8. Lebow Corporation makes one master budget for the next four months of operations: a. Budgeted selling price: product and it provided the following information to help prepare the $20 Budgeted unit sales for the following five months are listed in the table below. All sales are on credit. May January February March 15,000 35,000 10,000 15,000 15,000 Units Account receivable balance on January 1: $20,000 b. Regarding credit sales 60% 40% are collected in the month of the sale are collected in the following month C. The ending finished goods inventory equals: 20% of the following month's sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 2 pounds of raw materials. The raw materials cost per pound: $2.00 e. Regarding raw materials purchases 50% are paid for in the month of purchase, and 50% are paid for in the following month. Account payable balance on Jan 1: $12,000 Each unit of finished goods requires: 0.2 direct labor-hours. Variable manufacturing overhead rate: $10 f. The direct labor wage rate per hour: $15.00 g. Manufacturing overhead includes variable and fixed overhead. Fixed manufacturing overhead amount: $80,000 Fixed manufacturing overhead includes non-cash cost, which is solely depreciation cost: $20,000. h. The variable selling and administrative expense per unit sold: $2.00 The fixed selling and administrative expense per month: $70,000 The non-cash expenses, which are solely depreciation expenses, included in the fixed S&A expenses: $10,000. I. Minimum cash balance that the company will maintain: $30,000 Cash balance on January 1: $40,000 Assume that loan are borrowed at the beginning of a month and paid back at the end of the month altogether. Interest rate for financing : 12% Cash purchase of equipment: January February March $36,800 $30,000 $30,000 j. Balance of some accounts on Jan 1 Land Common Stock Retained Earning Equipment (net) $150,000 $250,000 $259,600 $265,000