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Backyard Warehouse makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $16 per birdfeeder. Each birdfeeder requires 2.0 board feet of

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Backyard Warehouse makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $16 per birdfeeder. Each birdfeeder requires 2.0 board feet of wood, which the company obtains at a cost of $6 per board foot. The company would like to maintain an ending stock of wood equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdfeeders equal to 15% of the next month's sales. Sales data for the company is as follows: (Click the icon to view the sales data.) (Click the icon to view additional data.) Read the requirements. Data table In any given month, 10% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 80% of credit sales is collected in the month after the sale, 10% is collected two months after the sale, 4% is collected three months after the sale, and the remaining 6% is never collected. Assume that the total cost of direct materials purchases in December was $530,000. The company pays 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase. crede)

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