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Arrangon Ltd$.$ is a company that manufactures and sells a single product called Zoltar. For planning and control

purposes they utilize a monthly master budget, which is developed in advance of the budget year. Their fiscal

year end is September $30.$

A listing of the estimated ledger balances for the company's current year of September $30,2024$ is given below:

The sales forecast consisted of these few lines:

For the year ended September $30,2024$: $450,000$ units at $$42\mathrm{.}00$ each ${?}^{**}$

For the year ended September $30,2025$: $475,000$ units at $$43\mathrm{.}00$ each

For the year ended September $30,2026$: $500,000$ units at $$44\mathrm{.}00$ each

$*$Sales for the year ended September $30,2024$ are based on actual sales to date and budgeted sales for the

duration of the year.

Your investigations of the company's records have revealed the following information:

Sales are seasonal with January, May, July and September being the slowest months with only $5\%$ of sales

for each month. February, March, August and December each contribute $8\%$ to the total sales. April and

June each account for $10\%$ of total sales. Sales in October account for $13\%$ of the total and peak at $15\%$ in

November. This pattern of sales is not expected to change in the next two years.

Sales are on a credit basis, with $50\%$ collected during the month of the sale, $35\%$ the following month, and

$14\%$ the month thereafter, with $1\%$ of total sales considered uncollectible $($bad debt expense$).$ Sales in August

and September $2024$ are expected to be

$$1,512,000$ and $$945,000$ respectively. Based on the above collection pattern this will

result in Accounts Receivable of $$674,730$ at September $30,2024,$ which will be collected in October and

November $2024.$

From previous experience, management has determined that an ending finished goods inventory equal to

$20\%$ of the next month's sales is required to fit potential fluctuations in demand. The finished goods inventory

at September $30,2024$ is expected to be $12,350$ units.

There is only one type of raw material used in the production of Zoltar: Zoltar Acrylic $($ZAC$)$ is a very compact

material that is purchased in powder form. Each Zoltar requires $2$ kilogram of ZAC, at a cost of $$11\mathrm{.}00$ per

kilogram. The supplier of ZAC tends to be somewhat erratic so Arrangon finds it necessary to maintain a raw

materials inventory balance equal to $30\%$ of the following month's production needs as a precaution against

stock$-$outs. The raw material inventory at September $30,2024$ is expected to be $38,190$ kilograms.

Arrangon pays for $35\%$ of a month's purchases in the month of purchase, $45\%$ in the following month and the

remaining $20\%$ two months after the month of purchase. There is no early payment discount. Beginning

accounts payable will consist of $$719,488$ arising from the following estimated direct material purchases for

August and September of $2024$: