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 $53 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 $609,076 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, 6 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 39,312 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 $59,249 on September 30, 2016.

Required: (see attachment for template)

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

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

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

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

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

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 $53 per unit. The estimated sales volume for the next six months is as follows: September October November December January February 16,900 15,600 18,200 26,000 11,700 13,000 units units units units units 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 $609,076 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, 6 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 39,312 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 $59,249 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: September sales October sales November sales December sales Total cash collections October November December Total 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 Desired ending inventory of finished goods Quantity of goods sold 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 Desired ending inventory of raw materials Quantity of raw materials to be used in production 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: September purchases October purchases November purchases December purchases Total cash payments October November December Total