Paper Company has hired you to develop budgets for the company that plans to start business in April. Below is information provided to help you in the development of these budgets.

Unit Sales

April$28,000$

May$31,000$

June$32,000$

July$33,000$

$$25$ Unit sales price

$0$March Sales

Collection of Sales:

$25\%$of the customers are expected to pay in month of sale

$70\%$of the customers are expected to pay in the month following the sale

$5\%$will never pay

$100\%$

Product and cost information:

$2$pounds of raw material per unit

$$0\mathrm{.}70$ Cost per pound

$60\%$Raw material purchases paid in month of purchase

$40\%$Raw material purchases paid in following month of purchase

$0\mathrm{.}5$hours of labor time per unit

$$20$ per hour

Labor is paid in month incurred

$$2$ Overhead cost per unit produced plus $$15,000$ Fixed overhead per month, which includes $$4,000$ Deprecation per month

Overhead costs that use cash are paid in month incurred

Inventory Balances

$0$Raw Material balance April $1$st

$20\%$Desired ending monthly raw material needs to meet next month's production $0$Beginning Work in Process

$0$Ending Work in Process

$0$Beginning Finished Goods

$25\%$Ending Finished Goods

$34,000$Units assumed for July Production $4,000$Per month selling and administrative expense and paid in month incurred $90,000$Beginning cash

Required: Prepare the following budgets on the budget worksheet, which contains a template of budgets you should use. I have adapted the budget model to meet the needs of this company, so the format might vary from the textbook. Please remember the textbook is a wonderful aid, but real$-$life is not a textbook, so you must be able to adapt. Use the instructions worksheet as your reference worksheet. The budget worksheet must only be cell references and formulas.

$1.$ Sales Budget for month and quarter. $2.$ Production By Budget for month and quarter.

$3.$ Direct materials purchase budget for month and quarter.

$4.$ Direct labor budget for month and quarter.

$5.$ Overhead budget for month and quarter.

$6.$ Cash receipts schedule for month and quarter.

$7.$ Cash payment schedule for month and quarter.

$8.$ Cash Budget for month and quarter. $9.$ Based on the quarterly cash budget you prepared, do you have any recommendations on cash management.