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. BALBOA COMPANY BUDGET ASSUMPTIONS Budgeted sales of the company's only product are as follows: January 2,000 units February 4,200 units March 3,000 units April 2,900 units May 1,500 units The selling price is $52.50 per unit. . All sales are on account. The company collects 80% of these credit sales in the month of the sale; 15% are collected in the month following sale; and the remaining 5% are uncollectible. The accounts receivable balance on December 31 was $35,000. All of this balance was collectible. The company desires to have inventory on hand at the end of each month equal to 25% of the following month's budgeted unit sales. On December 31, 400 units were on hand. Five pounds of material are required per unit of product. O REQUIRED Prepare the following budgets for the months of January, February and March as well as a total for the quarter ended March 31. 1. Sales budget (with a schedule of expected cash collections). 2. Production budget. 3. Direct materials budget (with a schedule of expected cash disbursements for materials). 4. Direct labor budget. 5. Manufacturing overhead budget including calculation of PDOR. 6. Unit Cost Card. Summary of quantity and price assumptions and calculation of cost per unit. 7. Selling and administrative expense budget. 8. Cash budget. 9. Budgeted income statement . BALBOA COMPANY BUDGET ASSUMPTIONS Budgeted sales of the company's only product are as follows: January 2,000 units February 4,200 units March 3,000 units April 2,900 units May 1,500 units The selling price is $52.50 per unit. . All sales are on account. The company collects 80% of these credit sales in the month of the sale; 15% are collected in the month following sale; and the remaining 5% are uncollectible. The accounts receivable balance on December 31 was $35,000. All of this balance was collectible. The company desires to have inventory on hand at the end of each month equal to 25% of the following month's budgeted unit sales. On December 31, 400 units were on hand. Five pounds of material are required per unit of product. O REQUIRED Prepare the following budgets for the months of January, February and March as well as a total for the quarter ended March 31. 1. Sales budget (with a schedule of expected cash collections). 2. Production budget. 3. Direct materials budget (with a schedule of expected cash disbursements for materials). 4. Direct labor budget. 5. Manufacturing overhead budget including calculation of PDOR. 6. Unit Cost Card. Summary of quantity and price assumptions and calculation of cost per unit. 7. Selling and administrative expense budget. 8. Cash budget. 9. Budgeted income statement