Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled:

• The company sells a single product at a price of $70 per unit. The estimated sales volume for the next six months is as follows:

  September	16,900	units
  October	15,600	units
  November	18,200	units
  December	26,000	units
  January	11,700	units
  February	13,000	units

• All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $804,440 on September 30, 2016.
• Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's budgeted sales. The finished goods inventory on September 30, 2016, is expected to be 4,680 units.
• To make one unit of finished product, 4 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 26,208 pounds on September 30, 2016.
• The cost per pound of raw material is $2, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $39,499 on September 30, 2016.

Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2016.

	October	November	December	Total
Expected sales in units
Selling price per unit
Total sales

b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2016.

Cash collections from:	October	November	December	Total
September sales
October sales
November sales
December sales
Total cash collections	$0	$0	$0	$0

c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2016.

	October	November	December	Total
Beginning inventory of finished goods
Units to be produced
Goods available for sale	0	0	0	0
Desired ending inventory of finished goods
Quantity of goods sold	0	0	0	0

d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2016.

	October	November	December	Total
Beginning inventory of raw materials
Purchases of raw materials
Raw materials available for use	0	0	0	0
Desired ending inventory of raw materials
Quantity of raw materials to be used in production	0	0	0	0

e. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2016. (Do not round intermediate calculations.)

Cash payments for:	October	November	December	Total
September purchases
October purchases
November purchases
December purchases
Total cash payments	$0	$0	$0	$0