budget plan exercise

Comprehensive Budget Budgeted sales of the company's only product for the next four quarters are: 50,000 units 60,000 units 65,000 units 55,000 units 04 The selling price is $20 per unit. You determine the break down of monthly sales. The following elements of the master budget will be prepared: 1. Sales budget (with a schedule of expected cash collections). 2. Production budget. Sales Budget By Month Budget Sales (units) Budget Sales (5) Schedule of Expected Cash Collections Additional data: All sales are on account. The company collects 75% of these credit sales in the month of the sale, 20% are collected in the month following the sale, and the remaining 5% are uncollectible. The accounts receivable balance on December 31, 2020 was $100,000. All of this balance was collectible By Month Production Budget Additional data: The company desires to have inventory on hand at the end of each month at least equal to 40% of the following month's budgeted unit sales. On December 31, 2020, 20,000 units were on hand. By Month