Friendly Feeders makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $18per birdfeeder. Each birdfeeder requires 3.0 board feet of wood, which the company obtains at a cost of $4 per board foot. The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements.

The company would also like to maintain an ending stock of finished birdfeeders equal to

20 % of the next month's sales. Sales data for the company is as follows:

3: Data Table

	Units
October actual sales (prior year) . . . . . . . . . . . . . . .	91,000
November actual sales (prior year) . . . . . . . . . . . . . .	80,000
December actual sales (prior year) . . . . . . . . . . . . . .	79,000
January projected sales . . . . . . . . . . . . . . . . . . . . .	76,000
February projected sales . . . . . . . . . . . . . . . . . . . . .	89,000
March projected sales . . . . . . . . . . . . . . . . . . . . . .	99,000
April projected sales . . . . . . . . . . . . . . . . . . . . . . . .	103,000

4: More Info

• In any given month, 15 % of the total sales are cash sales, while the remainder are credit sales

• The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5 % is never collected.

• Assume that the total cost of direct materials purchases in December was $530,000 The company pays 60% of its direct materials purchases in the month of purchase, and pays the remaining 40% in the month after purchase.

Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter:
1.	Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit.)
2.	Prepare the production budget.
3.	Prepare the direct materials purchases budget. Assume the company needs 130,000 board feet of wood for production in April.

4.	Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter.
5.	Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter

Requirement 1. Prepare the sales budeat for the first three months of the year as well as a summary budget for the quarter including a separate section that detals the type of sales made cash versus credt) Friendly Feaders Sales Budget For the Quarter Ended March 31 Month January February March Unit sales Multiply by Sales price per unit Total sales revenue Cash sales Credt sales Total sales revenue Requirement 2. Prepare the production budget for the frst three months of the year, as well as a summary budget for the quarter Friendly Feeders Production Budget For the Quarter Ended March 31 Month January February March Quarter Unit ses Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter Assume the company needs 130 000 board feet of wood for production in April (Round your answers to the nearest whole dollar) Friendly Feeders Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter Units to be produced Multiply by: Quantity (board fect) of DM needed per unit Quantity (board feet) needed for production Plus: Desired ending inventory of DM Total quantity (board feet) needed Less. Beginning inventory of DM Quantity (hoand fatto purchase Multiply by Cost per board foot Total cost of DM purchases Requirement 4. Prepare the cash collections budget for January, February, and March, as well as a summary for theirst quarter. (Round your answers to the nearest whole dolar) Review the sains budgut prepared in Requirement 1 March Quarter Friendly Fenders Cash Collections Budget For the Quarter Ended March 31 Month January February Cash sales in current month Collections on credit sales 60% of credit sales made one month ago 30% of cradt sales made two months ago 5% of credt sales made three months ago Total cash collections Requirement 5. Prepare the cash payments budget for direct materials purchases for the month of January February, and March, as well as a summary for the first quarter Review the direct maler Regedin Requirement 3. Friendly Feeders Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 60% of current month DM purchases 40% of last month's DM purchases Total cash payments