JC Floor Design makes ceramic tiles

December sales were:

500,000 units

Selling price $2 per unit

1,000,000 total sales

The Marketing Department, projects sales to:

increase by 5% in January

February sales will be 15,000 units less than January

March sales will be 3% higher than February sales

April sales will be the 5,300 units less than march

The price is not expected to increase

JC inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units

Clay the material to make the tiles cost $.50 per pound and each tile requires .6 pound. Actual clay inventory is 60,000 pounds and the inventory policy is to maintain an inventory equal to 25% of next month production requirement.

April production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000

Each tile requires .10 hours and the labor hourly rate is $8.00 per hour

Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly

Selling and administrative expenses are expected to be

Administrative salaries	$15,000 per month
Sales salaries	$12,000 per month
Sales commissions	10% of sales

70% of sales are cash sales and the remaining are collected in the next month

Material are paid 60% cash and the remaining the next month

The company has the following obligations:

100,000 in dividends will be paid in February

A new machine will be acquired in January with a cost of 250,000

A short-term loan with an outstanding balance of $150,000 is used to manage the cash position. Interest on the short-term loan are 1% monthly

Taxes of last quarter were $240,000 and will be paid in March. The company tax rate is 35%. and taxes are paid in the next quarter.

1. Compute the total sales for the quarter

2. Compute the units sales expected in February

3. Compute units to produce in March

4. Compute the Required Units of available production in January

5. Compute March Finished goods ending inventory

6. Compute the materials to be purchased in March

7. Compute the Direct Materials Cost for January

8. Compute the Labor needed in hours for March

9. Compute Direct Labor Cost for January

10. Compute Total Overhead for the quarter

11. Compute Product Cost

12. Compute Total sales expenses for the quarter

13. Compute Selling and Administrative expenses for February

14. Compute Cash Receipts for January

15. Compute Total cash payments for materials in March

16. Total cash available for February

17. Compute ending cash balance for March

18. Compute Total Cash Payments for February

19. Compute the preliminary cash balance for January

20. Compute the repayment of loan for february

21. Compute total interest paid

22. Compute Accounts Receivables in Balance Sheet

23. Compute Accounts Payable in th Balance Sheet

24. Compute Cost of goods sold

25. Compute Finished goods inventory in Balance Sheet

26. Compute Gross Profit

27. Compute after tax income