Jacob Ladder Limited manufactures and sells a rock-climbing suit that has peak sales in the second and fourth quarter of the financial year (i.e., 1 January to 31 December).

The following information concerns operations in 2024 - the coming year - and for the first three quarters of 2025:

1)The company's single produce sells for $49 per unit. Budgeted sales in units for the next seven quarters are as follows (all sales are on credit)

Unit Sales

Q1 2024 90,000

Q2 2024 280,000

Q3 2024 80,000

Q4 2024 310,000

Q1 2025 70,000

Q2 2025 290,000

Q3 2025 90,000

2)Sales are collected in the following projected pattern: 55% in the quarter the sales are made, 35% in the following quarter and the remainder in the quarter after. On January 1, 2024, the company's balance sheet showed $360,000 in accounts receivable. Of that balance $200,000 will be collected in the first quarter of 2024 and remainder in second quarter 2024. Bad debts are negligible and can be ignored.

3)The company desires an ending finished goods inventory at the end of each quarter equal to 35% of the budgeted unit sales two quarters in advance. On December 31, 2023 the company had 45,000 units on hand.

Required:

(1)Prepare the production budget for 2024 and Q1 2025 showing quarterly details and total figures for 2024. [3 Marks]

(2)Prepare the cash collection schedule for 2024.[2 Marks]