E Homework: Chapter 9 Homework Question 2, P9-65A (sim... Part 1 of 5 > HW Score: 60%, 6 of 10 points x Points: 0 of 4 Save The company would also like to maintain an ending stock of finished birdhouses equal to 10% of the next month's sales. Sales data for the company is as follows: Home Sweet Home makes backyard birdhouses. The company sells the birdhouses to home improvement stores for $16 per birdhouse. Each birdhouse requires 2.0 board feet of wood, which the company obtains at a cost of $5 per board foot. The company would like to maintain an ending stock of wood equal to 15% of the next month's production requirements - X More info In any given month, 30% of the total sales are cash sales, while the remainder are credit sales. Requirement 1. Prepare the sales budget for the first three months of the year, as well as a summary budget for the quarter Home Sweet Home Sales Budget For the Quarter Ended March 31 The company's collection history indicates that 80% of credit sales is collected in the month after the sale, 10% is collected two months after the sale, 4% is collected three months after the sale, and the remaining 6% is never collected. Unit sales 258,000 Assume that the total cost of direct materials purchases in December was $570,000. The company pays 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase Multiply by: Sales price per unit Total sales revenue January February March Quarter 79.000 85.000 92.000 S 16 $ 16 $ 16 $ 16 $ 1,264,000 $ 1,350,000 $ 1,472,000 $ 4,096,000 S 379,200 $ 408,000 $ 441.600 $ 1,228,800 831168 832608 884976 1210363 1240603 13265761 Cash sales Data table Credit sales Total sales revenue Units 96,000 86,000 77,000 October actual sales (prior year)...... November actual sales (prior year) .... December actual sales (prior year) January projected sales February projected sales March projected sales April projected sales 79,000 85,000 92.000 103,000