Communion Corp. plans to sell their juice glasses at $60 per unit. This product sells best during March. As a result, its peak sales occur in the first quarter of each year. Expected sales for the first four months of 2020 are:

Budgeted Sales units: January 3,500 units February 6,400 units March 1,200 units April 3,000 units Total 14,100 units

In addition, expected sales in May are 5,000 units.

Communion Corp. expects that it will meet all future sale requirements by maintaining an ending inventory equal to 20% of the months budgeted sales volume. The labour budget assumes that two hours of direct labour are necessary to produce each unit of finished goods and the hourly wage rate is $10.

Past experience shows that the company collects 60% of a months sales in the month of sale and 40% is collected in the following month. Accounts receivable of $60,000 at the end of December 2019 and are expected to be collected in full in January 2020. Bad debts are negligible and can be ignored. ending inventory equals 20% of the future month's budgeted sales volume (the text reads "it will meet all future requirements") beginning inventory for the month of Jan should be calculated as 20% of Jan. sales. for future month use the well known accounting principle of: Opening inventory is the value of inventory that is carried forward from the previous accounting period.

In completing parts (a) through (d) make sure to prepare proper budget schedules. For part ( e ), make sure to show your working.

a. From the data above, calculate budgeted sales in dollars. b. Prepare a production budget (units) for the period (four months). c. Prepare the direct labour budget expected to help Communion Corp. meet its production levels. d. Prepare the Schedule of cash collections from sales, by month and in total. From data above, if the company prepares a budgeted balance sheet as of April 30, compute the accounts receivable balance as of that date.