BUDGETING Betty DeRose, Inc. manufactures a single product. The company is in the process of preparing its 2026 master budget and has the following information available: a. The January 1, 2026 balance sheet for the company is as follows: ASSETS b. C. d. e. f. g. h. Cash Accounts Receivable Raw Material Inventory Finished Goods Inventory Equipment Accumulated Depreciation Total $ 20,000 123,200 14,400 26,000 460,000 $ 463,600 LIABILITIES & EQUITY Accounts Payable Common Stock Retained Earnings Total $ 16,480 300,000 147,120 $ 463,600 Sales in November, 2025 totaled $340,000 and sales in December, 2025, totaled $300,000. Sales are budgeted at $550,000 for January, 2026, and $625,000 for February, 2026. Sales are 20% for cash and 80% on credit. The credit sales are collected in the pattern 60% collected in the month of sale; 30% collected in the month following sale; and 10% collected two months following sale. The company expects to produce 60,000 units in January; 70,000 units in February; and 80,000 units in March, 2026. Raw materials inventory at January 1, 2026 consisted of 36,000 pounds. Each unit produced requires four pounds of raw materials. This raw material is purchased for $0.40 per pound. The ending inventory of raw materials should be 15% of the next month's production needs. Accounts payable is solely for the purchase of raw materials. Accounts payable are paid 80% in the month of purchase and 20% in the month following purchase. Direct labor costs are budgeted at $185,000 for January, 2026 and $200,000 for February, 2026. All January salaries will be paid in January and all February salaries will be paid in February. Manufacturing overhead is budgeted at $125,000 for each January and February, 2026. This amount includes depreciation of $5,000 per month. Selling and administrative expenses are budgeted at $120,000 for each January and February, 2026. This amount includes depreciation of $15,000 per month. Both overhead and s&a are paid as incurred. Betty expects to borrow $50,000 at the beginning of January, 2026. Betty will repay the $50,000 at the end of February along with $500 of interest. Finished goods inventory at February 28, 2026 is expected to be $39,000 and the work in process inventory at February 28, 2026 is expected to be $5,000. REQUIRED: (1) Vou (2) quiz Calculate the amount of raw materials purchased in December, 2025 82400 Calculate the expected cash collections in January and in February (3) Calculate the cost of raw materials to be purchased in January and in February (4) Calculate the budgeted cash balance at February 28, 2026 (5) Calculate the budgeted cost of goods sold for the two-month period of January-February, 2026