JAMZ Company is a family owned business that produces premium organic apple jam, which it sells to grocery stores nationwide for $8.50 per jar. The JAMZ Company budget committee is in the process of preparing budgets for the first quarter of the coming year and has gathered the following information:

1. Sales: Unit sales for November 2020 146,100 Unit sales for December 2020 151,000 Expected unit sales for January 2021 151,900 Expected unit sales for February 2021 137,900 Expected unit sales for March 2021 153,600 Expected unit sales for April 2021 149,500 Expected unit sales for May 2021 155,300 Expected unit sales for June 2021 157,500 The desired ending inventory is 20 percent of the next months unit sales. All sales are on account. Collections are expected to be 50 percent in the month of the sale, 35 percent in the first month following the sale, and 15 percent in the second month following the sale. Accounts receivable on December 31, 2020 totaled $828,027.50.

2. Direct materials: JAMZ Companys apple jam contains two main ingredients, apples and sugar. For every 24- ounce jar of apple jam, 1.5 pounds of organic apples at a cost of $1.75 per pound and 0.75 pounds of organic sugar at a cost of $0.85 per pound, will be used. The desired ending inventory for apples and sugar is 30 percent of the next months material needs (if necessary, round pounds up to the next whole pound; e.g. round 33,547.5 lbs up to 33,548 lbs.; also, rounded answers should be entered manually). Sixty percent of direct materials purchases are paid in the month of purchase, and the remaining 40 percent is paid in the month following the purchase. Direct materials purchases for December totaled $491,188.95 ($395,209.50 for apples and $95,979.45 for sugar). Accounts Payable on December 31, 2020 totaled $196,475.58.

3. Direct labor: To produce one jar of premium organic apple jam, 7.5 minutes of direct labor are consumed at an hourly rate of $14.00.

4. Manufacturing Overhead JAMZ Company expects variable manufacturing overhead to fluctuate with production volume on the basis of direct labor hours. Variable manufacturing overhead per unit and fixed manufacturing overhead are as follows: Indirect materials $1.25 per direct labor hour Indirect labor $0.70 per direct labor hour Utilities $0.45 per direct labor hour Maintenance $0.20 per direct labor hour Supervisory salaries $168,000 per year Depreciation $5,000 per month Facility rent $10,500 per month

5. Selling and Administrative Variable selling and administrative costs per unit are expected to be $0.35, which includes sales commissions of $0.25 per unit and freight-out of $0.10 per unit. Fixed selling and administrative costs are as follows: Advertising $10,000 per month Office salaries $102,000 per year Insurance $500 per month

6. Other Information Cost of goods sold should be calculated by multiplying the expected sales units by the cost per jar. Each month, JAMZ Company incurs $35,000 of interest expense. The corporate tax rate is 21 percent. The manufacturing overhead and selling and administrative expense budgets have already been prepared.

e. Prepare a standard cost card for one unit of product.

f. Prepare a pro forma income statement (for the quarter).

g. Prepare a schedule for expected cash collections from customers.

h. Prepare a schedule for expected payments for materials purchases.