Module 5 Written Assessment in MGH Connect 2023-09-08 Instruction: Prepare your responses in an Excel Worksheet for each of the Required A1,A2, and B below following the format of the table as displayed. Save as FLast_ACG3481_Module-5_yyyy-mm-dd, where F - first initial, Last = Last Name using yyyy-mm-dd as Date format. Send to your Instructor via a Course Message attachment. Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It opened negotiations with the local bank for a one-month loan of $62,000 starting March 1. The bank would charge interest at the rate of 0.5 percent per month and require the company to repay interest and principal on March 31. In considering the loan, the bank requested a projected income statement and cash budget for March. The following information is available: - The company budgeted sales at 23,000 units per month in February, April, and May and at 20,000 units in March. The selling price is $71 per unit. - The company offers a 2 percent discount for cash sales. The company's experience is that bad debts average 1 percent of credit sales. - The inventory of finished goods on February 1 was 3,500 units. The desired finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process. - The inventory of raw materials on February 1 was 2,830 pounds. At the end of each month, the raw materials inventory equals no less than 20 percent of production requirements for the following month. The company purchases materials in quantities of 305 pounds per shipment. - Selling expenses are 6 percent of gross sales. Admnstrative expenses, which include depreciation of $1,300 per month on office furniture and fixtures, total $75,000 per month. - The manufacturing budget for the utensil, based on norral production of 22,000 units per month, follows. Required: a-1. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. b. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. Complete this question by entering your answers in the tabs below. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar