llowing data pertain to Damon Manufacturina's operations: Data Table eq Current Assets as of December 31 (prior year): Cash 4,460 Accounts receivable, net 51,000 15,300 122,500 Inventory Property, plant, and equipment, net Accounts payable Capital stock $ 43,000 124,500 Retained earnings. . 22,800 Print Done a. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January $ 80,100 February $ 89,100 March $ 82,800 April. $ 85,500 May $ 77,400 b.Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Damon Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03. The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January 3,510 February 3,834 Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Damon Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month March Quarter January February 24,030 $ 26,730 $ Cash sales $ 24,840 $ 75,600 Credits sales 53,200 56,070 62,370 171,640 $ 77,230 $ 82,800 $ 87,210 $ 247,240 Total cash collections Damon Manufacturing Production Budget For the Quarter Ended March 31 Month March Quarter January 8,900 February 9,900 Unit sales 9,200 28,000 990 920 950 950 Plus: Desired ending inventory Total needed 9,890 10,820 10,150 28,950 890 990 920 890 Less: Beginning inventory 9,000 9,830 9,230 28,060 Units to produce 9 Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter Units to be produced Multiply by: Quantity (pounds) of DM needed per unit Quantity (pounds) needed for production Plus: Desired ending inventory of DM Total quantity (pounds) needed Less: Beginning inventory of DM Quantity (pounds) to purchase Multiply by: Cost per pound Total cost of DM purchases