Birdfeeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $ $16$ per birdfeeder. Each birdfeeder requires $3\mathrm{.}0$ board feet of$$ wood, which the company obtains at a cost of $ $2$ per board foot. The company would like to maintain an ending stock of wood equal to $25\%$ of the next$$ month's production requirements. The company would also like to maintain an ending stock of finished birdfeeders equal to $10\%$ of the next$$ month's sales. Sales data for the company are as$$ follows:

View the sales data.LOADING... View additional data.LOADING...

Read the requirements.LOADING...

Question content area bottom

Part $1$

Requirement $1.$ Prepare the sales budget for the first three months of the$$ year, as well as a summary budget for the$$ quarter, including a separate section that details the type of sales made$($cash versus$$ credit.$)$

Birdfeeders Plus

Sales Budget

For the Quarter Ended March $31$

January

February

March

Quarter

Unit sales

Multiply by: Sales price per unit

Total sales revenue

Cash sales

Credit sales

Total sales revenue

Part $2$

Requirement $2.$ Prepare the production budget for the first three months of the$$ year, as well as a summary budget for the quarter.

Birdfeeders Plus

Production Budget

For the Quarter Ended March $31$

January

February

March

Quarter

Unit sales

Plus: Desired ending inventory

Total needed

Less: Beginning inventory

Units to produce

Part $3$

Requirement $3.$ Prepare the direct materials purchases budget for the first three months of the$$ year, as well as a summary budget for the quarter. Assume the company needs $145$ comma $000$ board feet of wood for production in April. $($Round your answers to the nearest whole dollar. Abbreviation$$ used: DM$=$ Direct$$ Materials.$)$

Birdfeeders Plus

Direct Materials Budget

For the Quarter Ended March $31$

January

February

March

Quarter

Units to be produced

Multiply by: Quantity $($board feet$)$ of DM needed per unit

Quantity $($board feet$)$ needed for production

Plus: Desired ending inventory of DM

Total quantity $($board feet$)$ needed

Less: Beginning inventory of DM

Quantity $($board feet$)$ to purchase

Multiply by: Cost per board foot

Total cost of DM purchases

Units

October actual sales $($prior year$).......$

$88,000$

November actual sales $($prior year$).....$

$86,000$

December actual sales $($prior year$).....$

$75,000$

January projected sales. $.............$

$85,000$

February projected sales. $............$

$95,000$

March projected sales. $...............$

$90,000$

April projected sales. $................$

$107,000$

In any given$$ month, $15\%$ of the total sales are cash$$ 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 $ $580$ comma $000.$ The company pays $60\%$ of its direct materials purchases in the month of$$ purchase, and pays the remaining $40\%$ in the month after purchase.