ABC Corporation manufactures and sells a seasonal product that has peak sales in the 3^rd quarter. The following information concerns each quarter in 2019:

A.The company's single product sells for $40/ unit, budgeted sales in units are as follows (all sales are on credit)

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Total

20,000

60,000

80,000

40,000

200,000

B.Sales are collected in the following pattern 70% in the quarter of sale, 30% in the following quarter

On January 1, 2019 the company's balance sheet showed $180,000 in account receivable all of which will be collected in the 1^st quarter of the year.

C.The company desires an ending inventory of finished goods = 20% of next quarter assuming the DEI for quarter 4 is 6,000

D.30 pounds of raw material are required to complete 1 unit of product, the company desired raw material ending inventory 10% of the following quarter production, assuming the DEI of quarter 4 is 45,000 the raw material costs 0.40/ pound

E.Raw material purchases are paid 50% in the quarter of purchase and 50% the following quarter, on January 1^st, 2019 the company's balance sheet showed $51,600 in account payable all of which will be paid in the 1^st quarter

F.Every unit needs 0.8 of the direct labor hours and every hour costs $30/ hour.

Required:

Prepare the following budgets:

A.Sales budget, and expected cash collection budget.

B.Production budget.

C.Direct material budget and cash disbursement budget.

D.Direct labor budget.