Davies shows the following information for the Sales Budget for next quarter:

Month Units Sales

January 10,000 $200,000

February 30,000 $600,000

March 40,000 $800,000

Requirement 1: Assume Davies plans to begin January with 2,000 units and requires ending inventory to be equal to 20% of next month's sales. Compute the required number of units to be produced in February. Show your computations.

Requirement 2: Assume each unit requires .4 hours of labor costing $15.00 per hour. Compute the Direct Labor budget for February. Show your computations.

Requirement 3: Assume all sales are on credit. Credit sales are collected at the rate of 60% in the month of sale and 40% in the month following the sale. Accounts receivable at December, 31 is expected to be $40,000. Compute the cash collected from customers for the month of February. Show your work.