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:
• September16,900unitsOctober15,600unitsNovember18,200unitsDecember26,000unitsJanuary11,700unitsFebruary13,000units
• 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 $781,456 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, 5 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 32,760 pounds on September 30, 2016.
• The cost per pound of raw material is $4, 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 $98,748 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.