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 $68 per unit The estimated sales volume for the next six months is as follows September 18,200 units October 16,800 units November 19,600 units December 28,000 units January 12,600 units February 14,000 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 $841,568 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 5,040 units To make one unit of finished product, 7 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 49,392 pounds on September 30, 2016 The cost per pound of raw material is $3, 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 $111,661 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 b Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2016 c Prepare a production budget in units, by month and in total, for the fourth quarter of 2016 d Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2016 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 )

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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

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 $68 per unit. The estimated sales volume for the next six months is as follows:

September 18,200 units

October 16,800 units

November 19,600 units

December 28,000 units

January 12,600 units

February 14,000 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 $841,568 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 5,040 units.
To make one unit of finished product, 7 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 49,392 pounds on September 30, 2016.
The cost per pound of raw material is $3, 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 $111,661 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.

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

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

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

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.)