following information and has asked us to prepare the master budget (operating and financial) for the first quarter of 2023. It plans to sell two different type of wooden skateboard decks: Standard size deck sells for $50, and Longboard deck sells for $65. Predicted monthly sales quantity for 2023 are as follows: Standard / Longboard January 2,500 / 900 February 4,000 / 1,000 March 2,000 / 1,000 April 1,200 / 800 Management has also told us the following facts: Sales are 70% cash and 30% on account Collections of the 30% of sales made on account each month are as follows: o 40% in the month of sale o 40% in month following sale o 20% in 2nd month after sale The balance of $32,000 in A/R as of the end of 2022 consists of: o $8,000 from sales made in November all of which is budgeted to be collected in January of 2023 o $24,000 from sales made in December of which $16,000 is expected to be collected in January and $8,000 in February of 2023. Finished Goods inventory on December 31, 2022, consists of 1,000 standard boards at a cost of $30 each, and 700 Longboards at a cost of $60 each. FIFO inventory costing is used. Desired ending Finished Goods inventory is 15% of the following months budgeted sales quantity. Direct materials required are 2 pounds of wood per standard deck and 3 pounds of wood per long-board deck. The average cost of wood is $3.00 per pound. Raw Materials Inventory on December 31, 2022 consists of 4,000 pounds of wood at a cost of $3.00 per pound. Desired ending Raw materials inventory each month is 3,000 pounds of wood. Each deck requires .5 hours of direct labor. The average cost of direct labor is $16.50 per hour. Variable manufacturing overhead of $1.00 per board consists of utilities which get paid at the end of each month in cash. Monthly payroll for corporate employee salaries is $10,000 plus commissions of 10% of sales. (S&A) Rent expense on the corporate office each month is $4,000 Depreciation Equipment (Factory) $4,000/month Depreciation Building (Factory) $2,500/month Depreciation Furniture & Fixtures (Factory) $1,000/month Depreciation Equipment (Corporate Office) $700/month Depreciation Furniture & Fixtures (Corporate Office) $400/month Property Tax for the Factory is $5,000/month *Property tax is not paid in cash. It goes on account (Property Taxes Payable) Property Tax for the Corporate Office is $2,000/month *Property tax is not paid in cash. It goes on account (Property Taxes Payable) Insurance expense (Factory) is $1,500/month Supplies Expense = 2% of sales (S&A) 25% of the purchases of materials are made with cash. 75% are made on account (A/P) Payments are made towards A/P in the amount of $3,000 each month. Payments are made towards the principal amount of N/P in the amount of $2,500 each month. Equipment is expected to be purchased in cash for $40,000 on January 15, 2023, and another $20,000 of equipment purchased in cash on March 1, 2023. No depreciation was incurred for these assets this quarter (apart from the depreciation figures already given). A building is expected to be purchased for $450,000 on February 15, 2023. Of this amount, $300,000 is purchased on account (Notes Payable) and $150,000 is purchased with cash. No depreciation was incurred for this asset this quarter (apart from the depreciation figures already given). Check Figures: Sales Total: $613,500.00 Product Cost per Unit Standard: $19.45 Longboard: $22.45 COGS: $267,265.00 Cash Balance (END OF QUARTER): $259,715.00