Problem $14-25($Static$)$ Sales, production, purchases, and cash budgets LO $14-4,14-5,14-7$

Soprano Company is in the process of preparing the second quarter budget for $2022,$ and the following data have been assembled:

The company sells a single product at a selling price of $$50$ per unit. The estimated sales volume for the next six months is as follows:

March $12,000$ units June $16,000$ units

April $14,000$ units July $18,000$ units

May $20,000$ units August $12,000$ units

All sales are on account. The company's collection experience has been that $40\%$ of a month's sales are collected in the month of sale, $55\%$ are collected in the month following the sale, and $5\%$ are uncollectible. It is expected that the net realizable value of accounts receivable $($i$.$e$.,$ accounts receivable less allowance for uncollectible accounts$)$ will be $$330,000$ on March $31,2022.$

Management's policy is to maintain ending finished goods inventory each month at a level equal to $50\%$ of the next month's budgeted sales. The finished goods inventory on March $31,2022,$ is expected to be $7,000$ units.

To make one unit of finished product, three pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal $40\%$ of the next month's estimated usage. The raw materials inventory is expected to be $20,400$ pounds on March $31,2022.$

The cost per pound of raw material is $$7\mathrm{.}50,$ and $80\%$ of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $$65,700$ on March $31,2022.$

Required:

Prepare a sales budget in units and dollars, by month and in total, for the second quarter $($April$,$ May, and June$)$ of $2022.$

Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of $2022.$

Prepare a production budget in units, by month and in total, for the second quarter of $2022.$

Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of $2022.$

Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of $2022.$