Birdhouses Inc. makes backyard birdhouses. The company sells the birdhouses to home improvement stores for $20 per birdhouse. Each birdhouse requires 2.0 board feet of wood, which the company obtains at a cost of $5 per board foot. The company would like to maintain an ending stock of wood equal to 15% of the next month's production requirements. The company would also like to maintain an ending stock of finished birdhouses equal to 10% 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 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.) Birdhouses Inc. Sales Budget For the Quarter Ended March 31 Unit sales Multiply by: Sales price per unit Total sales revenue Cash sales Credit sales Total sales revenue January February March Quarter More info In any given month, 25% of the total sales are cash sales, while the remainder are credit sales. The company's collection history indicates that 75% of credit sales is collected in the month after the sale, 15% is collected two months after the sale, 8% is collected three months after the sale, and the remaining 2% is never collected. Assume that the total cost of direct materials purchases in December was $1,001,000. The company pays 60% of its direct materials purchases in the month of purchase, and pays the remaining 40% in the month after purchase. Print Done - X February projected sales 105,000 110,000 - 125,000 Requirements Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter: 1. Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit.) 2. Prepare the production budget. 3. Prepare the direct materials purchases budget. Assume the company needs 242,000 board feet of wood for production in April. 4. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter. Print Done Done Data table Units October actual sales (prior year)....... 72,000 November actual sales (prior year)..... 84,000 December actual sales (prior year) 91,000 January projected sales.. 95,000 February projected sales March projected sales... April projected sales.. 105,000 110,000 125,000 Print Done