Company manufactures and sells a radio Expected sales are as follows: June July 36000 units August 40000 units 50000 units October 38000 units November 30000 units December 24000 units 35000 units Sept Management likes ending finished goods equal to 25% of next months sales Each item takes 2 chips to make the radio - each chip costs $ 4 a) Prepare a production budget for July - September b) How many chips must be purchased fron July - September c) If 60% of the chips are paid for in the month of purchase with 40% the following month - how much cash was expended on chips in August May The following information is budgeted for a company April Sales 110,000 Merchandise purchases 130,000 85,000 Selling and Administrati 92,000 50,000 50,000 Junes 180,000 105,000 50,000 All sales are on credit. 40% is collected the month of sale, 58% in the month following sale and the balance is uncollectible. Merchandise purchases are paid the month following purchase. Selling and administrative expense includes $ 8,000 of depreciation. All other selling and administrative expenses are paid as incurred. The company wants a cash balance of $ 15,000 at the end of the month and will borrow the amount needed in increments of thousand dollars. Borrowing occurs at the end of the month. The beginning balance of cash on May 1 was $ 24,000. a) Prepare a cash balance for May. b) Prepare all journal entries for May